The Guardian has a good interview with Paul Krugman on macroeconomic conditions in the EU.
"Britain's looking the best among the major European economies ... Britain actually may have stopped contracting - that's the most positive thing one can say." Elsewhere, PK attributes this to a devalued pound and a generally aggressive monetary policy. I think Britain should be quite pleased to not be constrained by EMU.
He also takes up the German puzzle: "How is it possible that Germany, which did not have a house price bubble, is having a steeper GDP fall than anyone else in the major economies?
His Answer: Germany depended upon exporting to the bubble regions of Europe, so they actually got side-swiped by the loss of those exports worse than the bubble regions themselves got hit.
His Concern Moving Forward: "We worry about the drag on world demand from the global savings coming out of east Asia and the Middle East, but within Europe there's a European savings glut which is coming out of Germany. And it's much bigger relative to the size of the economy."
Update: Scott Sumner concurs with PK's analysis of the UK.