Contesto allargato 09:46 Nov 9, 2009
Certainly, the widely followed monthly ZEW indicator recorded a very sharp rise in optimism tempered by an acknowledgement that the current situation remains subdued. Still better, German and French GDP managed to record modest expansion in Q2 led by consumption. This starts to point towards better growth next year.
That said, risks remain and we are struck by concerns that German companies may start to shed labour at a more aggressive rate going forward. Indeed, the muted rise in core European unemployment stands in stark contrast to the experience of the US.
***Critically***, the German state-subsidised process of “kurzarbeit” or short-time working has allowed companies to hang onto workers they may not need. With the German election result now known, this social contract may start to loosen | 
The translation workplace 
