(FORTUNE Magazine) – -- The British economy as a whole may not be doing too well, but British corporations took 28 of the top 50 places in a recent survey that ranked 250 European companies by profitability. (See table below for the top ten.) France had eight, while economic powerhouse West Germany had only two. But isn't Britain beset by killer interest rates and a rising trade deficit? P-E International, the London consulting firm that did the survey, calculated profitability by measuring profit margins, return on assets, and -- here's one explanation -- the ratio of revenues to wages. British companies generally pay less than their Continental counterparts. London Business School economist Evan Davis has another interpretation. Says he: ''The Germans have many more quite successful companies, giving the Germany economy strength in depth.'' - Martha Mader

-- Who's afraid of German reunification? Not Europe's CEOs and leaders. A survey by Fortune France, a joint venture between French publisher Hachette Filipacchi and Time Warner, the parent of Fortune's publisher, shows executives would welcome East Germany, though some worry that reunification could delay European unity. Excerpts: -- Raul Gardini, 56, president of Italy's Ferruzzi Group conglomerate: ''It would be regrettable if German reunification slowed the process of European unification. 'Official' Europe is already behind the 'real' Europe.'' -- Sir Colin Corness, 58, chairman of Britain's Redland, which makes building materials: ''Far from being a problem, unification is going to enlarge our markets.'' -- Patrick Ponsolle, 45, general director of France's Cie Financiere de Suez, a financial services group: ''I do not put much credence in the notion that a reunified Germany would turn ((only)) toward Eastern Europe. But I could understand very well if for a year or two the Germans have their hearts only in Eastern Europe.'' Said West Germany's Daniel Cohn-Bendit (a.k.a. Danny the Red), 45, a Green Party militant: ''If European governments persist in putting the national interest before the European interest, Germany will dominate the EC. Either Europe absorbs Germany or Germany will impose itself on Europe.'' - Brett Duval Fromson

-- Meet headhunter Tamas Toth, in the U.S. recently to tout job opportunities in his native Hungary and other parts of Central Europe. Toth, 43, opened the Budapest subsidiary of Vienna's H. Neumann International a year ago. Since then, he has found local talent to help IBM, Mobil, Coca-Cola, and others - expand in Central Europe. Now he is looking for U.S. executives to work in Hungary for multinationals like British Petroleum and Philips. Most wanted: managers with experience in marketing or finance. To help find them, Toth's firm is forming a joint venture with New York City headhunter Nordeman Grimm. Toth talks up an intangible benefit for Americans who agree to sign up to work in his part of the world: ''Managers should regard it not just as a career possibility, but as a chance to be part of big changes.'' - M.A.

-- Talk about a routed army! Entrepreneurs from East Berlin to Budapest are peddling the flotsam of Soviet occupation in the form of Red Army campaign medals, uniforms, caps, belts, berets -- even wooden clubs. Western travelers are snapping them up, and the best bargainers get the best prices. Meanwhile, business at the Berlin Wall remains brisk, seven months after it was breached. Rent a hammer and chip your souvenir. Or if that's too strenuous, buy a key ring attached to a plexiglass-encased piece of the wall. - C.D.

-- Here's a tip for managers doing business in Eastern Europe: Don't call it Eastern Europe. Poles, Hungarians, and Czechoslovakians prefer Central Europe. Geographically, it's more accurate. Besides, Central Europeans like to distance themselves, psychologically at least, from the Soviets. - M.A.

BOX: EUROPE'S TOP 10 PERFORMERS

RANK COMPANY INDUSTRY COUNTRY 1 Glaxo Holdings Pharmaceuticals Britain 2 RTZ Mining Britain 3 Vuitton Moet Hennessy Luggage, beverages France 4 Tarmac Construction Britain 5 Lafarge Coppee Building materials France 6 Ciments Francais Building materials France 7 Jefferson Smurfit Paper products Ireland 8 British Telecom Telecommunications Britain 9 Guinness Brewing, distilling Britain 10 BTR Industrial products Britain

A new survey puts British companies on top of the charts. SOURCE: P-E INTERNATIONAL