German Defense Minister Boris Pistorius proposed a hybrid model of voluntary and selective conscription, potentially leading to a return to compulsory military service, to address growing security threats in Europe. This plan, which would see approximately 5,000 18-year-olds conscripted annually, aims to bolster the Bundeswehr's ranks to meet NATO commitments, currently requiring around 80,000 additional recruits over the next 10 years. The proposal is currently under review in Germany's parliament, with a decision anticipated before the 2025 summer recess. The plan involves sending questionnaires to 18-year-olds, with men required and women and others volunteering to participate.

While President Frank-Walter Steinmeier supports the move, citing Russia's war in Ukraine and the evolving security landscape, concerns exist within the business community. Steffen Kampeter of the Confederation of German Employers' Associations (BDA) voiced fears that compulsory service would negatively impact the German economy. Economist Holger Schäfer from the German Economic Institute (IW) noted that the impact on the labor market depends on the number of conscripts and the length of service. A previous Ifo Institute study suggested investing in voluntary service would be more beneficial. Professor Carlo Masala from the Bundeswehr University Munich believes economic concerns are exaggerated, estimating a maximum of 25,000 annual conscripts.

Impact Statement: The debate over reinstating compulsory military service in Germany highlights the tension between national security needs and economic considerations. The final decision will have significant implications for both the country's defense capabilities and its workforce.