From growing up in, and visiting London frequently, I don't really agree. London is as, or more expensive than, NYC. Programmers are expensive in London, and in dealing with the British tech culture, they don't seem to have the 'entrepreneurial spirit' I'm used to in the US, it seems less 'young, talented, take on the world attitude' and more about working at satellite offices for IBM etc.

If I was going to pick somewhere in the EU, I'd go for Berlin.