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In Europe, weak dollar wrecks Americans' dreams

BERLIN - Andrew Curry once loved going out for dinner and drinks in Berlin, feeling far wealthier in the German capital than he did at home in the United States.

With the dollar now worth about 20 percent less than when he first arrived in 2005, the 30-year-old freelance journalist has a leaner lifestyle.

"I used to be able to brag that Berlin was really affordable but now my rent actually works out on par with Washington and New York. It's pretty terrible," said Curry, whose income is almost exclusively in the devaluing currency.

"I do everything to try to spend fewer euros now."

The weak dollar and recent tax laws are hurting many of the 350,000 or so Americans who live in the European Union, especially those who are paid in dollars.

It is being felt by students, professionals and pensioners in Berlin, Paris and London -- where the dollar is at a 26-year low against sterling and, according to a Reuters poll, expected to stay above $2 to the pound for the next six months.

For those who work in the creative industries and are often self-employed, the dollar's plunge to all-time lows against the euro has hit already fluctuating incomes and lifestyles.

"The dollar is having a terrible impact on us," said U.S. writer Eunice Lipton, a New Yorker who most of the year lives in Paris with her husband, artist Ken Aptekaar.

"We earn our money primarily in the States and then transfer it here. In the last few days we have transferred $15,000 which became 10,200 euros and that is killing us," she said.

Americans making dollar-euro transfers have seen the amount they receive shrink by about 50 percent since early 2000, when the currencies were at parity.

Like other Americans in Europe, Lipton says she feels the pain of the weak dollar most when entertaining friends or going out to dinner -- a popular pastime in the French capital.

"I can't complain because the Americans have had it round the other way for years. I'm in my 60s and I've been coming here since I was 19 and most of that time I've been able to eat in great restaurants for very little money," she said.

"In the past, I knew the exchange rate was great for us and I sort of gloated about it, without trying to be rude. Now our terms of reference are different. It is not amusing. I just hope it gets better."

EIN POOR BERLINER

About 50,000 Americans moved to Germany in 2006, according to the German statistics office -- many attracted by its art, music, history and relatively low cost of living, according to Americans living here.

Seen as a fashionable, central city with green open spaces, Berlin is prized for what many expatriates say is a better quality of life than at home.

Those who rely on dollars now need to keep a close eye on their wallets and are finding they might not be able to live so comfortably.

Source: Reuters

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Article publication date: 20 Pluviôse Ray80 (21 Nov 2007)

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