The problem is that the umlauts in your file are not properly UTF-8 encoded. Either your file was not created using yEd or you processed the file with some other application that corrupted your file. (Aside from the broken encoding, the current file is not indented at all - and all versions of yEd indent XML content.)
Anyways, this can (or rather has to) be fixed manually using a text editor: corrected file.