Some good advice here. I can't speak for many of the EU countries but I know first hand what it's like in England, France, Spain and Italy. The change from AUD to Euro is the first hit at the moment. ~1:1.6 when I was there in September. Multi level taxes on basic services, water/power, petrol, VAT on everything inc. food, taxes on pensions and income streams, etc... will come as a surprise to any Australian wanting to live there. In comparison here it's club med. Food is plentyful and dirt cheap, power bills although a lot complain are relatively very cheap, water cost is insignificant, really ironic for something we lack and don't even recycle. Having said that health cover is far superior, in France anyway, than here. You pay for everything but a health fund will get you to 100% gap filled in cases. I stayed a month at my parent's place in September and ran the number. There's no way I'd retire there. Talking to Family relos in northern Italy also confirmed the bigger picture. And it's not getting any better, life standards are degrading quite fast actually.
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