We study the near-resonant dipole-dipole interaction between two atoms
in a broadband squeezed vacuum. We show that this ''vacuum'' modifies
the rate of spontaneous emission of the atoms so that it may depend n
ot merely on their relative position, as is normally the case, but als
o on their center-of-mass position. The explicit form of this latter d
ependence is a function of the way squeezing is achieved. We also show
that in contrast to the spontaneous decay rate, squeezed vacua do not
modify the dipole-dipole potential between the atoms as compared to i
ts usual form. Finally, we develop a Monte Carlo wave-function descrip
tion of the intraction between atoms with an arbitrary internal struct
ure and a squeezed vacuum and apply this formalism to the case of off-
resonant excitation of the atoms. We find that in addition to the usua
l light shift; the squeezed vacuum results in an additional contributi
on to the effective potential governing the evolution of the atomic gr
ound states.