If you have multiple years left there, I'd definitely consider working with the couches you have, but ditching the pub table in favor of something more substantial. to anchor the room.

Also, float the couch and big chair off the wall to make them take up more space. Perhaps find an inexpensive console table for behind the couch?

You can hang almost any material from your curtain rods; sheets, cheap yardage, thrift store finds. Use clip-on curtains rings--they are fast and easy. Whatever you hang up can be reused when you move.

As far as setting up the room, it looks pretty good. I would move the shelf unit that is next to the fireplace over to where the desk is now. Maybe put a bench with storage drawers under the window in the dining area. You could store your desk items in there, and use the dining table for a work surface. Also, if you can stretch your budget for a rug under the dining table i think it would really improve the look of the place.

I would move the soft seating around the fireplace, with sofa facing it and the chair to side of the FP nearest the window, and an area rug to anchor the group. Purchase a 24x48 console table to place behind the sofa with your 2 chairs and ditch the pub table. Move the desk into the window for a space you want to be in.

Check if you can temporarily remove, or add chain and reposition with a screw hook in the ceiling, the current dining fixture.

Just pull the German "lace" curtains down and head to a Hella or Toom to find some different floor to ceiling drapes or other curtains. Just be sure to talk with the landlord-they probably won't mind. Viel Gluck!

Console tables are really amazing, versatile pieces of furniture. If you were to face the couch towards the fireplace, the console table behind it could work as a desk space, too.

I would suggest moving the media shelving that's next to the fireplace ... at least so that the fireplace is more center of attention.

The great thing about curtains is that they pack easily for the return trip!

I don't know, a "few more YEARS" sounds like enough time to buy something that makes the time more pleasant and comfortable, even if you sell it when you leave. (Maybe not new, but there must be second-hand options there somewhere!)

With such a wonderful open area to work with, you don't have to be rectilinear in your furniture arrangement. I would pull the furniture away from the walls and create an intimate seating area on the diagonal. That way, you can move around it and it becomes a much more dynamic room.

Ditto to everyone for pulling the furniture away from the walls and moving the bookcase by the fireplace to a different location. Also, I think the room needs a much larger dining table than that pub table to balance things out. I agree that a few years in a place is enough time to at least get something at a local donation store, or off of a craigslist or freecycle local website.

If you're looking for deals on second hand stuff, look at the entrance of your Grocery store. Usually there are lots of ads where people are trying to get rid of nice stuff for decent prices. (couches, table, bikes...) Also look in the newspaper. There are lots of good deals in there. If German is a problem, leo.de is my favorite translator site. Dänishches Bettenlager is also I really nice store with decent prices. I recently got curtains there for 15 euros. Good luck! I hope you enjoy your time in Germany! The apartment looks really nice, I love those ceilings!

Curtains with some color would help. Get them longer and hem (you, a dry cleaner/tailor or stich witchery) if they are odd length.

Switch out the light fixture and put it back when you leave. And highlight the fireplace too.