Germany Discards Slow-Coach Tag to Become Europe’s Locomotive

In German, die rote Laterne -- the red lantern that hangs off the caboose of a train -- is slang for last place. Less than a decade ago, Germans were wondering whether that was an apt description for their dawdling nation.

Germany produced top-quality technology but seemed held back by an aging, risk-averse population and a sclerotic business culture. In 2005, Germany’s 10-year growth rate was half, and its unemployment rate more than double, that of the U.S. The Mittelstand -- Germany’s small and midsize-manufacturers, often family-run -- seemed like a relic of Europe’s industrial past.