As previously suggested, Germany/France call the shots and grow nicely, with German exports to the periphery (including military) funded by the ECB that dictates the terms conditions that austerize the periphery’s populations.

Doesn’t get any better than that!

Europe Manufacturing Grows at Fastest Pace in Four Months, Led by Germany

By Simone Meier

December 1 (Bloomberg) — Europe’s manufacturing industries expanded at the fastest pace in four months in November, led by Germany, the region’s largest economy.

A gauge of manufacturing in the 16-nation euro area rose to 55.3 from 54.6 in the previous month, London-based Markit Economics said today. It had previously reported an increase to 55.5 in November. A reading above 50 indicates expansion.

Germany has powered the region’s recovery as global demand boosted sales at companies from Daimler AG to BASF SE. The European Commission said on Nov. 29 that while German growth will outpace the euro region’s expansion this year, the economies of Ireland, Spain and Greece may continue to shrink.

“Euro-zone economic activity lost momentum in the third quarter and it seems likely to be relatively muted over the coming months,” said Howard Archer, chief European economist at IHS Global Insight in London. “Tightening fiscal policy across the region, high unemployment, recurring sovereign-risk problems and slower global activity are serious threats.”

New orders at manufacturers rose at the fastest pace since July and payrolls increased for a seventh month, Markit said.