I agree, Berlin or London are great startup hubs to look at. I'm in London and there's a great community and lots of people hiring but I hear so many good things about Berlin. Quite a few Silicon Valley startups are opening up offices in London so it's a good place to work for a valley company out of the valley.
I lived in Berlin for a few months some years ago and it's an awesome place to live generally. Plus relatively cheap for a city of its size and cool factor, especially if you get a place in the ex-East.
