The German economy is back! or it might be coming back... Yesterday's IFO survey of business confidence was the strongest it's been in five years. And what is good news for Germany is good news for Europe, as Germany accounts for a third of all economic output in the 12 nation euro zone.

However, not everyone is ready to trumpet the start of a new gilded age...

"I expect that after this quite good second half, Germany will sink back to anemic growth next year, said Jörg Krämer, the chief economist of HVB Group in Munich.

Kramer said the new German government was not likely to pursue radical changes in the labor market, as Merkel had once advocated. That will limit the number of new jobs generated, he said

Until the labor/social services side of the equation gets sorted out, I don't see how "old europe" can compete with China/Asia or the US.