Midtown was a sea of orange and red as fans filled the streets to get to their favorite watering hole to watch the Netherlands-Spain game for the FIFA World Cup final. On the upstairs level of The Duke of Kent, however, things were feeling a little more Spanish as the majority of the face painting and jerseys indicated the favour Spain’s soccer team.

The quaint English-style pub, which is self described as “Midtown Toronto meets the English corner pub”, and has been a fixture on Yonge and Eglinton for more than 30 years, has seemingly no direct loyalty to either team, despite the overwhelming evidence to the contrary.  After arriving and ordering I asked a couple of the busy servers if they had expressed any allegiances and discovered that on of their very own bartenders had lived in Spain for a year and thus the majority of the staff was cheering for Spain by extension.  After finishing a light lunch, of admittedly pretty decent pub fare, I asked my server if she could introduce me to a table of regulars.

I found out that the Duke of Kent has a long history of loyal regulars in combination with the transient restaurant crowd.  I was seated at a table with three thirty-something-year-old men who all wished not to have their names released for professional reasons.  They revealed that they had not been Spain supporters from the beginning (one for Brazil, one of Italy, and one who didn’t seem to like soccer at all but was generally happy for any excuse to socialize) but after their own teams had been knocked out of the final chose the team they felt most likely to win.  After talking to a couple more tables this seemed to be the majority consensus: either their team had already been knocked out or, much like the NHL playoffs, they were caught up in the energy of it and happy to cheer for who they felt “should” win.

The game was intense and even idle spectators and bandwagon-jumpers were sitting on the edge of their seat waiting for 116 long minutes until Spain finally broke the 0:0 tie that had been prevailing.
The entire floor erupted with excitement, most of which was happy.  The small corner of Netherland supporters, though defeated, appeared proud of their team’s spirit and eventually found their own reasons to join the merriment.

It was Spain’s first World Cup win. On the way home it was obvious that everyone at the Duke, on Yonge street, on the TTC and in the City of Diversity was Spanish for the night.

More than a half of Canadians surveyed expect the economy to improve in 2010, according to the public opinion research firm POLL ARA. Last year, only two in ten respondents said 2009 would bring better economic times.

The figures highlight a renewed sense of optimism, with many saying they were unaffected by the crisis. Despite the increase in confidence, more than a half of Canadians still believe the country is in a recession. The change in sentiment marks a stark reversal from only a year ago when the same poll was conducted. Then, it showed that consumer confidence had plummeted to historically low levels.

Michael Marzolini, chairman of POLLARA, said Canadians “reacted decisively in the face of the recession. They were shaken but not stirred.”

Another 43 per cent of Canadians believe the employment situation will improve, compared to 12 per cent a year ago. Seventeen per cent of Canadians believe the economy is also in a period of moderate growth, compared to six per cent last year.

“In the Canadian spirit that spring is just around the corner, it shows Canadians’ belief that we are emerging from the crisis with better days ahead,” said Mark Adler, president of the Economic Club of Canada. Canada’s top economists, however, cautioned against becoming too enthusiastic, citing inflation, high unemployment and the growing federal deficit as potential factors that could derail a steady recovery.

Historically, developed markets such as Canada and the United States have recovered quickly after a recession. Not this time around, say the economists. European countries and Japan are expected to experience even slower growth.

“We’re on the road to recovery but that road is not taking us back to where we began,” said Warren Jestin, Chief Economist at Scotiabank.

However, the economists all agreed that the worst of the recession has passed. “The Canadian economy was cyclically challenged but fundamentally sound,” said Craig Wright, Chief Economist at RBC Capital Markets.

Going forward, the economists expect rapid growth in emerging markets such as China, India, Chile and Brazil. Wright said growth in emerging markets will also bring an increased financial market volatility, forcing developed markets to adopt more highly skilled, niche-oriented businesses.

“The talent in India, Mexico and China is completely untapped. Canadians need to increase their skills if they want to compete in a world-class arena,” he said.

The poll results were collected from 4,263 respondents, with a margin of error of 11/2 per cent.

Ryerson’s own International Issues Discussion (IID) Series understands this. The IID had its third talk in Prospects for Peace: A Forum on the Israeli-Palestinian Conflict on Wednesday, Oct. 14; a free event where former Israeli defence officer and special advisor to the Israeli Prime Minister Yossi Alpher was invited to speak, presented in room 103 of the engineering building.

The political heavyweight prepared a talk called “Why are Israelis skeptical about peace?” for Ryerson students and as anticipated, received quite a response.

Despite these inevitable passions that arise in showcasing the conflict, the IID strives to engage students in the discussion of global affairs.

“It is definitely important to present both sides of any conflict,” said Kate Grisdale, one of the student hosts of the IID. “We have several talks scheduled to present different facets of this one.”

“When you have family in Lebanon and Gaza, it isn’t easy to stay neutral or level-headed”

Dr. Marina Milner-Bolotin, a Ryerson physics professor, who encouraged all of her students to come and listen, came early to the forum and had extremely high hopes for the content.

“I am hopeful that there will be good ideas,” she said. “It’s everyone’s responsibility to learn about events like this. What everyone is looking for is real, lasting peace, not something written on paper.”

Alpher covered subjects like the “Two-State Solution,” the significance of the Arab Peace Initiative, and the political maneuverings of the Obama administration in the Middle East.

A lively speaker, he used large gestures and pregnant pauses to articulate his arguments. Most affecting was the emphasis on “comprehensive peace” between Israelis and Palestinians and the importance of reaching a lasting agreement between both sides.

As was somewhat expected, not all of the opinions expressed by Alpher went over well with everyone in the audience.

He took a distinct Israeli stance on many of the most controversial topics involved in the conflict. One of the emphasized subjects was the danger of losing Israeli identity, and the “threat to Israel’s right to exist as a Jewish State.”

The issue that sparked the strongest reaction during the forum regarded the actions taken against the “militant terrorist groups” that existed within the civilian population of the Gaza Strip.

Alpher said, “In dense urban areas… where [the Palestinian terrorist groups] were using the Gaza population as a shield, where mosques were used as arms armories, and schools as headquarters, is it not acceptable for [Israel’s military] to attack those installations knowing that civilians would be killed?”
The response was immediate among the audience.

A male student at the far back of the auditorium exclaimed loudly, “No! Of course that’s not acceptable, are you kidding me?”

Alpher was given the chance to defend his statement. After comparing the situation to the United State’s actions in Afghanistan and Iraq (which also resulted in heavy civilian casualties), he said, “I am not claiming that ours is the most moral army in the world… I don’t know if any army fits that description.”

Following the discussion which garnered a round of applause, some students and professors lingered in the classroom. There were strong reactions to the forum, and many people seemed to have a personal stake in the conflict being discussed.

“When you have family in Lebanon and Gaza, it isn’t easy to stay neutral or level-headed,” said Ali Hassan, a second-year business student at Ryerson. “There’s a reason why security has to come to these events. It is hard to sit there and listen to the other side without trying to make it personal.”

November will be a busy month for the IID, as they have two more speakers coming to continue the Israel-Palestine discussion. Dr. Yoram Peri will be visiting on Nov. 19 and Nadia Hijab on Nov. 25. For more details, you can visit the IID website at www.iid.kislenko.com.

“When you wander around the city, it doesn’t look like there is a recession,” he says. “But it’s here.”

As with most European cities, such as Amsterdam and London, there are few signs that the recession has hit consumer confidence.

The vibrant social scene is a stark contrast from the deserted restaurants in the United States. Despite bleak headlines, Europeans are seen crowding the narrow city streets, while anxious shoppers shove their way into department stores.

The impact of the global financial crisis appears somewhat muted – at least from the surface. In reality, the recession has already shaken Europe at its core. Today, the economies of the European Union are headed for a free fall, with the Baltic and Eastern European countries expected to suffer the most. For Hegarty, the biggest challenge facing his team is to help restore confidence to a broken and battered financial system.

The East-West Divide

On the 19th floor of the Galaxy Tower, Hegarty sits calmly at the front of the boardroom table. In the distance, a thin white line can be seen dividing the Alps from the grayish sky. Not once does Hegarty glance at his notes; he recites the data by memory.

“The patient isn’t dead yet,” he says. “It should reach some form of death in the next 18 to 20 months. Only then can we hope that the phoenix will rise from its ashes.”

A bitter East-West divide cuts through the heart of Europe. While Western Europe deals with falling demand, Eastern European countries – many of which have yet to adopt the euro – face the prospect of economic collapse.

In Turkey, for instance, the number of poor has exceeded the 10 million mark. Over the last decade, thousands of Turkish immigrants have settled in Western Europe. But the recession could force many back to their home country.

“The financial crisis does horrible things to hope,” Hegarty says. “Parents tend to take children out of school. This is more common among girls.”

The most vulnerable countries are former Soviet states. In the Baltic countries – Latvia, Lithuania and Estonia – GDP is expected to plummet by 10 per cent, while industrial output in Hungary and Poland will take an even larger hit.

“People who once felt safe under central planning were just beginning to adapt to the new market economy,” he says. “Now they’re falling into the abyss again.”

In Russia, former billionaires face vanishing fortunes amid falling commodity prices and massive debt loads. Hegarty says male life expectancy will dip by three to four years.

“The contraction is higher in Europe than in the United States,” Hegarty says. “There are two reasons for this. First, the Europeans simply didn’t see this coming. Secondly, there are serious imbalances in many countries. There was this belief that it could only get better.”

But that hope is beginning to waver. Even in Ireland, GDP is expected to drop by 7 per cent this year as its construction industry grinds to a halt.

Leaders of the EU called on the International Monetary Fund late last-month to double its bailout of the Eastern European countries. Hegarty says he is disappointed by the European Union’s slow response.

“There is no European-wide solution,” he says. “The EU budget was never designed for a crisis like this.”

Where are the skeptics?

As the global credit crisis deepens, Hegarty looks back to when the global economy had peaked in 2007. At a time when stocks soared, very few had voiced concern over whether the money made on Wall Street was real.

When the dream ended, the world was faced with a brooding nightmare: a collapse of confidence in a system based on trust.

“No one said, ‘This can’t be true,’” he says. “The media didn’t do it either. If you aren’t skeptical, the risks of it happening again are so much greater.”

But as the crisis shows, even skeptics have had their voices drowned out by a deluded public. Investors who asked Bernard Madoff one too many questions, for instance, were shunned from his circle of elites.

“There is a Greater Fool Theory,” Hegarty adds. “You know that it’s all unreal, but you stay in as long as you can, just so you can get ahead of everyone else.”

Going Beyond the Washington Consensus

In recent years, the International Monetary Fund and the World Bank have been accused of supporting the Washington Consensus. The policies put in place by the IMF and World Bank were often criticized for favouring the interests of the United States – at the expense of Third World countries.

But as the financial crisis unfolds, both the IMF and World Bank have silenced critics by re-emerging as the main source for regulatory advice. When Iceland’s economy collapsed, the IMF stepped in as the only option for emergency funding.

This year, the World Bank expects to lend €50 to 60 billion ($80 to 95 million), double the amount it lent during the Asian financial crisis of the nineties.

“It won’t get the world out of the crisis,” Hegarty says. “But it will set a good example. If development were a precise science, there would be no poor country in the world. Developmental assistance can only provide a fraction of what countries need.”

One of Hegarty’s main projects will be to encourage private individuals to invest in other countries and to promote improved financial reporting.

Hegarty shrugs off criticism that the financial crisis was the product of failed capitalism.

“This is capitalism working,” he says. “It is characterized by recurrent financial crises. But the tremendous question is: if this isn’t a great system, then what is? No one wants the communist system.

“We need to focus on job creation – jobs that pay well. Economic growth requires an equal division of the spoils.”

Hegarty knows that the task isn’t a simple one. And there are no guarantees that the stimulus packages will ease the pain.

The economic crisis in Europe has merely magnified the East-West division. And as plunging demand threatens to drag down the whole of Europe’s economy, the global recession will serve to test the strength of the European Union.

Every speaker is honest, direct and often critical. And the people to whom they address their list of concerns aren’t offended – they welcome the criticism with an open-mind.

At an annual meet-and-greet with the executive board of Hogeschool Utrecht – one of the many universities in the city – a group of 20 international students talk about their good and bad experiences abroad.

Geri Bonhof, president of the board, listens attentively as one of the students from Russia shares her frustration.

“I come from a former communist country. We’re used to people telling us what to do, but the Dutch just expect us to know. It was difficult for me to get used to.”

But the criticisms don’t stop there. One student gets so carried away with her complaints, she apologizes to the president. “No, no,” says Bonhof, as she jots down a few notes. “We need to know this. These are all small suggestions we want to put into practice the next year.”

When the meeting ends, Bonhof doesn’t leave the room. Instead, she mingles with the rest of the students.

Based on a centuries-old polderen “polder” system, this kind of no-nonsense meeting is nothing new for the Dutch. During the Middle Ages, the people of Holland built polders to keep the country from sinking below sea level. These cities – which were at war – put aside their differences for the sake of preventing a country-wide catastrophe.

It’s a mentality deeply rooted in Dutch society, as they’ve learned through centuries of foreign occupation that survival requires teamwork, flexibility and the discipline to solve problems. Today, the country is prepared to weather any storm – even the global economic crisis that threatens to shatter its industrial and export sectors.

But the Dutch have already accepted a brutal fact: no country is immune from a recession. Not even the Netherlands. And if there is any lesson they’ve learned so far, it’s this: In case of an emergency, don’t panic. Just take a look at Utrecht, the fourth largest city in the country. Home to 300,000 residents – of which 65,000 are students – the city is an emblem of economic progress.

Even amid all the global panic, the layoffs and the bankruptcies, the people of Utrecht remain forward-looking. Of course, they’re very aware that their neighbour Germany – Europe’s economic engine – is suffering at a pace unseen in decades.

And while many regional economies across Europe and North America scramble for a cure, Utrecht is expected to survive intact. But its small and resilient economy isn’t the result of a complex set of equations, strategies or policy measures. In fact, its strength is built upon a very simple, but pragmatic idea: Invest in knowledge and the prosperity will follow.

“It’s an attitude,” Bonhof says. “At an early age, from primary school all the way up to high school, kids are encouraged to go to university. That’s why we’ve made it more affordable through scholarships and government funding.”

So far, this attitude has paid off. For the Dutch, education isn’t just a path to employment. It’s a method of survival. Utrecht’s knowledge-economy – which depends on and leverages its strong labour force – grows at an annual rate of 3 per cent, almost twice the national average.

Currently 43 per cent of the labour force is educated at the bachelor’s or master’s level. Last year, the province of Utrecht recorded an unemployment rate of 3.3 per cent – the lowest in the country.

“Higher educated people are in general more employable than lower educated workers,” says Tim Legierse, economist at Rabobank. “What we do know is that the unemployment rate among young people and low-skilled workers rises more during recessions than does the unemployment rate for higher skilled workers.”

But the stellar figures don’t automatically imply that a university degree is the answer to economic growth. For Utrecht’s labour force, university is merely a stepping stone. Practical skills – such as the ability to speak more than one language – matter even more.

There is no doubt that Utrecht is blessed with all the obvious factors that make a city attractive to investors. Office space is more affordable than most major European cities; It’s a 30-minute train-ride from the capital, Amsterdam, and 40 minutes from the biggest port in Europe, Rotterdam; And with historical roots dating back to the Roman Empire, the city offers its residents and investors a pleasant work-life balance.

But these factors don’t tell the full story as to why Utrecht’s economy stands out from the rest of the crowd. Many cities pitch similar features – location, quality of life and access to technology – but don’t attract the same level of investment.

Today, as governments around the world pour millions of dollars into dying industries, further fuelling their own deficits, Utrecht is investing in its future. So even when the crisis hits, potentially threatening any one of its sectors, the city’s labour force will respond in typical Dutch fashion: train on the job, expand skill set and, if all else fails, switch to another industry.
Located across from the famous Dom Tower is Undutchables, one of the many job agencies in the city. Bronagh Ryan, the manager of the Utrecht branch, says companies are still hiring.

“We’re dealing with such a large range. There isn’t one solely standing out, but we’ve been getting calls in pharmaceuticals, health care and stupidly enough, finance. There are job openings in debt-collecting.”

Ryan, who works primarily with international applicants, expects the recession to blow right over Utrecht’s economy. Originally from Ireland, she says the economic situation in Dublin is much worse by comparison.

“I’ve yet to meet people in Utrecht who’ve lost their jobs and homes. If the economy in the Netherlands shrinks, then it won’t be a major problem. In Ireland, the banks have completely stopped lending. It’s a domino effect that will just worsen the situation.”

Ryan attributes the strong economy in Utrecht to the flexibility of its labour force.

“If you take a look at Dutch CVs, it’s amazing what you see. They’ve got such a broad array of experience and speak many languages. You can’t help but wonder, ‘How did they start in this industry and end up in another one?’”

As the IT capital of the country, Utrecht suffered severely at the hands of the Dot-com crash in 2001, which left thousands of workers jobless. Statistics Netherlands recorded Utrecht’s unemployment rate at 7 per cent, which doubled the rate in 2000. That year, Ryan lost a whole slew of clients as the city slipped into a recession. When the economy picked up again, she couldn’t find anyone to fill the IT vacancies.

“All the people who worked in IT disappeared into another industry. It was only two years after the IT crash and I couldn’t find anyone. The Dutch keep learning and updating their knowledge.”

Then, in 2005, the city grappled with a massive labour shortage. Companies in finance, IT and sales simply couldn’t find enough workers. Even during tough economic times, the labour force didn’t just adapt – they planned ahead. And it’s ironic the Dutch prefer to diversify, rather than specialize, because it goes against basic economic theories.

But as the IT crisis shows, the Dutch aren’t theorists.

“They’re very practical people,” says Marissa van Leur, a marketer of economic affairs at the City of Utrecht. “Employers stimulate employees to train in other skills. Workers are aware that if they’re not needed at one company, they can do other things.”

Van Leur, who has worked in 10 completely different industries ranging from landscaping to social insurance, looks to the future with optimism. But make no mistake: Investors, employers and policymakers in Utrecht aren’t turning a blind eye away from the recession. The only path they won’t follow, though, is reckless stimulus spending. Instead, the municipality, along with many private companies, see the crisis as a chance to develop a competitive edge.

The city’s diverse, but knowledge-intensive industries – gaming, bio-sciences, finance and design – not only add value to the economy, but attract vast pools of local and foreign talent. As Richard Florida writes in Rise of the Creative Class, economic progress in the future depends on the 3Ts: talent, technology and tolerance to ideas. While regional governments around the world talk at length about the 3Ts, the City of Utrecht puts it into practice.

“We give incentives to students who want to pursue gaming,” van Leur adds. “Many schools encourage entrepreneurs to start up a company by helping them get a patent or find empty factories with low rent. By enabling innovation, we help to develop a part of the economy that wasn’t there before.”

Utrecht’s highly-developed services sector, which accounts for 80 per cent of the jobs, wasn’t exactly the product of choice. During the 1960s, inflation in the Netherlands spiralled out of control. Trade unions demanded higher wages, while GDP remained stagnant at the expense of Utrecht’s labour force. All this ended during the Great Moderation of the nineties, when the government slashed spending and part-time workers entered the labour market.

The biggest transition took place in Utrecht, as heavy-industries gave way to the emerging services sector. Pure industries like car parts and metal manufacturing still exist outside of the city, but aren’t expected to survive much longer. This trend might seem a tad Darwinian, especially compared with countries like France and the United States, which are doling out large heaps of money to save easily outsourced industries.

But Jacqueline Timmheruis, an economist at the Netherlands Bureau for Economic Policy, says countries that stick to the ‘Concept of Banana Republic’ are swimming in dangerous waters.

“It’s a political term to describe countries that depend solely upon one product – such as bananas. It’s a well-known truth here that you shouldn’t gamble on one or two industries.”

But Utrecht was never really a hotbed for natural resources to begin with. Even during the Dutch Golden Age, traders looked beyond the country’s borders for wealth. In Utrecht, finding a solution to outsourcing meant going back to the basics. Entrepreneurs asked themselves: “What can we export that no one else can?”

“We export knowledge,” says Henni de Groot, vice-principal at St. Bonifatius College. “We export knowledge about systems, building bridges, dealing with water problems, how to grow crops and infrastructure.”

It’s unsurprising, then, that many international companies hire the “Dutch guy” to solve their problems. But maintaining this reputation means there is little room for complacency. That’s why the Utrecht government wasted no time in propping up cutting-edge R&D facilities and investing in education. Today, the city holds the leading position in IT, biotechnology and medical research.

“I think even with cheap labour in India or elsewhere, there are certain areas of expertise that simply cannot be outsourced if the quality benchmark is set on the higher standard,” says Anna Elferink, a project manager at the Utrecht Foreign Investment Office. “I cannot predict the future, but right now, with the knowledge received from Utrecht educational establishments, we can still ensure our competitive advantage.”

Even with its benefits, Utrecht’s knowledge-economy is by no means a perfect model. The shift towards higher-education and services, for instance, has left huge vacancies in construction, renovation, plumbing and even teaching.
“Because everyone wants a higher-education, we’re lacking in handicraft jobs,” de Groot adds. “Even the job of a teacher isn’t so high by people’s standards, so they do something else.”

In the nineties, the government tried to fill the shortage by encouraging Turkish and Moroccan immigrants to work in the low-paid jobs the locals didn’t want to do. The plan somewhat backfired, as many of the immigrants moved to more affordable neighbourhoods, even further segregated from the Dutch locals. The city’s policymakers now face the challenge of integrating the immigrants back into the Dutch community.

And then there’s the timing of the recession to consider.

“Because the Dutch culture is so egalitarian, everything is about meetings, and giving everyone a chance to speak,” says Brian Maston, a native of New York and professor at Hogeschool Utrecht. “Sometimes it takes forever to get something done. Maybe that’s why we haven’t felt the recession yet.”

But the recession is here. And regardless of its impact, the Dutch don’t expect pandemonium on the streets. Though the trade unions are strong, they rarely go on strike. Politicians, unions and businesses have already taken their frustrations to the table – the only problem is they haven’t found a solution yet.

Perhaps that’s one drawback of the polder system. Or maybe there just isn’t any cause for concern. After all, the Dutch are ready to improvise, adjust and move on. Sure, the government pursued a trend-based budget policy in the nineties, which gave the economy a buffer during a recession. And though the country boasts one of the strongest treasuries in Europe, it’s the workers’ realistic outlook that gives cities like Utrecht a thick shield.

Fred Wolffers, executive manager of recruiting agency Job Vision, says many Polish workers have already left the United Kingdom and Germany for Utrecht. But demand for temporary “flex” workers is also much higher this year – another indication that companies are tightening their budgets.

“Every country in the world is linked to the United States. So if a U.S. company goes bankrupt, we all suffer.”

But the Dutch aren’t fazed.

“When the United States deals with a crisis, they react like this,” he says, waving both of his arms frantically in the air. “But we stay calm and look for solutions. If we saw Michael Jackson on the street, we think ‘Hey, there’s Michael Jackson’ and keep walking. We’re a small country, but very well-organized.”

If organization, foresight and knowledge are the keys to survival, then developed countries should take note. But unlike many cities in North America, which refuse to confront the threat of outsourcing, the people of Utrecht haven’t just accepted the fact, but thrived from it.

At a time when policymakers and critics question the viability of capitalism – Utrecht’s resilience proves that an open-economy, applied with proper regulation – can lead to both innovation and healthy economic growth.

“If there is anything that will save the city, it’s the people,” van Leur says.

So yes, the Dutch are quite Darwinian. But it’s their practical thinking that has helped to sharpen Utrecht’s competitive edge – because no matter how dire the recession might be, the Dutch know they’ll pull right through.

Even if the food tastes awful, at least it didn’t cost you an arm and a leg. Mentally, you walk away feeling somewhat satisfied; physically, not so much.

If you’re a stingy person, don’t live in Europe. Once you do, you’ll never eat out again.

Though many countries in the euro zone are in a recession, prices for most items haven’t dropped.

In the Netherlands, inflation is actually on the rise. Although the high figures are driven by last year’s skyrocketing gas prices, even the price of homes has increased.

Of course, the Netherlands is an exception. But don’t expect to find a cup of hot chocolate anywhere in Europe for less than €2.60 ($4). I did manage to stumble upon a Tim Horton’s self-serve stall in Glasgow. I paid £1.50 ($2.65) for a medium hot-chocolate that didn’t even taste half as good. And I was required to make it myself.

You’d be better off ordering beer or wine. For €2 ($3.20), it’s cheaper than orange juice.

But for the avid travellers planning to visit Europe this year, remember this: save now, spend later. Once you land in the EU, you’ll realize the benefits of financial prudence.

Sale racks are virtually non-existent in department stores, so don’t go to the back expecting to find gold. Craving Chinese chow mein? It’ll cost you €6 per box ($10). And don’t forget to multiply all of the prices by 1.6 (or more if the Canadian dollar continues to nosedive).

If you’re a guy, you’ll probably go broke taking a girl out for dinner. And if you’re a girl, expect to pay for dinner yourself.

Learning how to cook isn’t a matter of survival; it’s a matter of avoiding bankruptcy.

Welcome to the euro zone – where everything (and I mean everything) – costs a fortune.

There are, however, a few exceptions to this rule. You can still find stores like Euroland (the Dutch version of the Dollar Store), or buy cheap towels and furniture at IKEA.

The standard of living in Europe is one of the highest in the world. Even in Ireland – one of the countries hit hardest by the global economic crisis – the price of a McDonald’s meal hasn’t budged. Expect to pay around €9 ($15) for a cheeseburger, fries and drink.

Introduced in 2002, the euro actually pushed up the prices of everything from household goods to food. The prices looked cheaper (€1 euro instead of 3 marks), but were actually more expensive than before. “The producers benefited from the euro,” says a student from Germany.

So how do Europeans manage? For one thing, workers are paid in euros, which is reflected in the higher cost of living. The minimum wage in most of the Northern European countries (Ireland, United Kingdom, France and Germany), for instance, is around €7 ($11). By Canadian standards, it’s quite high.

So maybe the saying, “going Dutch,” isn’t so far-fetched after all. I’ve been living here for two months and I always think twice before I spend.

Case in point: I spent €17 ($28) on groceries last week, which was enough for only four days. But a friend of mine was kind enough to cook extra food for me, so I ate the same meal for three nights in a row.

I’m not suggesting that it’s impossible to survive in Europe. My advice? Prepare a budget or plan before you go, because it’ll benefit your pocket in the long run.

These are the days when I miss eating $4 bowls of Vietnamese phở.