German economy in free fall? Some of possible causes

Looking forward to the future of business

Bankruptcies are on the rise at Germany, hitting mostly small and medium sized firms (10 employees or less

Some possible casues:

1.  High energy costs

2.  High labor costs $100,000 wage average for German workers

3.  Stiff competition from Chinese in automotive sector

4.   Low innovation rate and more

The once mighty engine of European economy is facing significant challenges which impacts European economy and probably rest of the world.      

Eurozone on the way to recovery (or simply because Chancellor was reelected)?

Ateneo Professor on Entrepreneurship

The German Channel D W yesterday announced that Eurozone is on the way to recovery.  However, all that was featured were scenes from Germany:  the forthcoming Octoberfest and Germans in the major cities.  Of course, the face of the German Chancellor Merkel who was reelected was shown.  Maybe the reelection sent signals of stability and continued support of Germany to the Euro and the Eurozone.  That is how much leadership can send calming effect on markets and economy.

That news, although somewhat a PR news and overly positive was certainly made to put positive note on the economy and inspire the rest of Europe