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Time of India
6 days ago
- Politics
- Time of India
Germany: Would compulsory military service hurt the economy?
AI- Representative Image The German economy cannot cope with young people first completing mandatory military service, and only then entering the labour force, Steffen Kampeter of the Confederation of German Employers' Associations (BDA) told the Financial Times. Are his concerns warranted? Germany got rid of compulsory service in 2011, through strictly speaking, it was not abolished but merely suspended. This suspension may be lifted for national defence needs — should the country be threatened or under attack. Since then, young men must no longer undergo medical examinations to determine their physical fitness for military service. But now, German defence minister Boris Pistorius has cautioned that Europe is facing a growing security threat. "According to the assessments of international military experts, it must be assumed that Russia will be in a position to attack a Nato state, or a neighbouring state, from 2029 onwards," Pistorius said last summer, speaking with the German daily Frankfurter Rundschau. Pistorius has promoted a range of measures to address this threat, including a proposal that would reintroduce a kind of compulsory military service. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo These measures would strike a balance between the current model of voluntary military service and selective service. Germany eager to strengthen its army The German military, or Bundeswehr, currently has about 181,000 active personnel. Its ranks are set to grow by over 10 per cent to 203,000 by 2027. The Financial Times reports that the German armed forces will need around 80,000 additional recruits over the next 10 years to meet its Nato commitments. In June, Pistorius announced plans to introduce a hybrid model of voluntary military service and selective conscription. It would see approximately 5,000 18-year-olds conscripted for basic service each year. If there are not enough additional volunteers to fill all positions, a return to compulsory military service could follow, Pistorius told the German weekly Frankfurter Allgemeine Sonntagszeitung. The minister's proposed measures have been submitted to Germany's parliament, where a decision is anticipated "before the 2025 summer recess." The defence Ministry has said "this should significantly improve the operational readiness of the armed forces." Just how voluntary is this? Pistorius envisions a basic service that could have a duration of least six months, with a possible extension of up to 23 months. "Everyone can decide for themselves how long they want to serve in the military," his ministry stated on the matter. "Regardless of this, all other types of enlistment, whether as a soldier on temporary duty or as professional soldier, will continue to exist." The plan is to send a letter to all young people after their 18th birthday, with a QR code that would direct them to an online questionnaire. Those who complete the questionnaire and express a basic interest in serving will be invited for a medical examination. Young men will be required to complete the questionnaire, whereas for "women and persons of other genders, answering the questions is voluntary," according to the defence Ministry. Pistorius' plans to strengthen the army have received backing from President Frank-Walter Steinmeier, who told the public broadcaster ZDF that he was "in favor of compulsory military service." Steinmeier said Europe's tense security situation, Russia's war in Ukraine and the US government's stance on trans-Atlantic relations under president Donald Trump warranted the move. The BDA'S Kampeter agrees with the assessment, and told the Financial Times he thought Europe's "security situation is dramatic." And while he also believes that Germany needed "more active soldiers and to strengthen our pool of reservists," he said he felt that "only a strong economy can make that possible." Will conscription hurt the economy? DW spoke with the German economic institute (IW) in Cologne to determine how justified Kampeter's concerns were. "The effect of compulsory military service on the labor market depends on how many recruits are drafted, and how long they have to serve," said economist Holger Schäfer. "Drafting 20,000 recruits is unlikely to have much of an impact, but drafting an entire age group certainly would." Schäfer did not want to give his opinion on whether compulsory military service was sensible or even necessary, but added that "naturally, security aspects play a major role in this question." The Bundeswehr currently provides opportunities for young people to complete vocational training in skilled trades and academic fields, such as mechatronics or medical professions. But Schäfer said this is unrealistic, given that basic military service is too short "to typically complete vocational training." The new conscription model under debate does provide possibilities for extending one's service period, during which vocational training could be completed. This was the case when Germany had mandatory military service during the Cold War. This way, young people might enter the labour market later, but they would be fully trained, and able to counter the shortage of skilled workers. Mandatory or voluntary service? A study conducted last year by the Munich-based Ifo Institute, an economic research institution, found that it would be better to invest in voluntary military service than to introduce universal military service in Germany. The study, commissioned by the German finance ministry, warned that compulsory military service would be expensive and have a negative impact on citizens. The Financial Times reported that mandatory service would worsen young people's financial prospects by delaying the start of their studies or careers. Carlo Masala, a professor of international politics at the Bundeswehr University Munich, meanwhile, believes concerns about the economic consequences of a return to any form of conscription are "exaggerated." Even with compulsory military service, he expects that no more than 25,000 young people would be drafted each year — significantly fewer than the 200,000 West German conscripts drafted at the height of the Cold War. Masala believes that the German economy has recognized "that it must engage in some positive way with defence questions" and that ultimately, it must "accept this."
DW
6 days ago
- Politics
- DW
Germany: Would compulsory military service hurt the economy? – DW – 07/23/2025
The idea of bringing back compulsory military service in Germany is controversial, not least because some business leaders fear this could harm the economy. The German economy cannot cope with young people first completing mandatory military service, and only then entering the labor force, Steffen Kampeter of the Confederation of German Employers' Associations (BDA) told the . Are his concerns warranted? Germany got rid of compulsory conscription in 2011, through strictly speaking, it was not abolished but merely suspended. This suspension may be lifted for national defense needs — should the country be threatened or under attack. Since then, young men must no longer undergo medical examinations to determine their physical fitness for military service. But now, the German Defense Minister Boris Pistorius has cautioned that Europe is facing a growing security threat. "According to the assessments of international military experts, it must be assumed that Russia will be in a position to attack a NATO state, or a neighboring state, from 2029 onwards," Pistorius said last summer, according to the German daily . Pistorius has promoted a range of measures to address this threat, including a proposal that would reintroduce a kind of compulsory military service. These measures would strike a balance between the current model of voluntary military service and selective conscription. The German military, or Bundeswehr, currently has about 181,000 active personnel. Its ranks are set to grow by over 10% to 203,000 in the year after next. The reports that the German armed forces will need around 80,000 additional recruits over the next 10 years to meet its NATO commitments. In June, Pistorius announced plans to introduce a hybrid model of voluntary military service and selective conscription. It would see approximately 5,000 18-year-olds conscripted for basic service each year. If there are not enough additional volunteers to fill all positions, a return to compulsory military service could follow, Pistorius told the German weekly . The minister's proposed measures have been submitted to Germany's parliament, where a decision is anticipated "before the 2025 summer recess." The defense ministry says "this should significantly improve the operational readiness of the armed forces." Pistorius envisions a basic service that could have a duration of least six months, with a possible extension of up to 23 months. "Everyone can decide for themselves how long they want to serve in the military," his ministry stated on the matter. "Regardless of this, all other types of enlistment, whether as a soldier on temporary duty or as professional soldier, will continue to exist." The plan is to send a letter to all young people after their 18th birthday, with a QR code that would direct them to an online questionnaire. Those who complete the questionnaire and express a basic interest in serving will be invited for a medical examination. Young men will be required to complete the questionnaire, whereas for "women and persons of other genders, answering the questions is voluntary," according to the defense ministry. Pistorius' plans to strengthen the army have received backing from German President Frank-Walter Steinmeier, who told the public broadcaster that he was "in favor of compulsory military service." Steinmeier said Europe's tense security situation, Russia's war in Ukraine, and the US government's stance on transatlantic relations under President Donald Trump warranted the move. The BDA'S Kampeter agrees with the assessment, and told the he thought Europe's "security situation is dramatic." And while he also believes that Germany needed "more active soldiers and to strengthen our pool of reservists," he said he felt that "only a strong economy can make that possible." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video DW spoke to the German Economic Institute (IW) in Cologne to determine how justified Kampeter's concerns were. "The effect of compulsory military service on the labor market depends on how many recruits are drafted, and how long they have to serve," the economist Holger Schäfer said. "Drafting 20,000 recruits is unlikely to have much of an impact, but drafting an entire age group certainly would." Schäfer did not want to give his opinion on whether compulsory military service was sensible or even necessary, but added that "naturally, security aspects play a major role in this question." The Bundeswehr currently provides opportunities for young people to complete vocational training in skilled trades and academic fields, such as mechatronics or medical professions. But Schäfer says this is unrealistic, given that basic military service is too short "to typically complete vocational training." The new conscription model under debate does provide possibilities for extending one's service period, during which vocational training could be completed. This was the case when Germany had mandatory military service during the Cold War. This way, young people might enter the labor market later, but they would be fully trained, and able to counter the shortage of skilled workers. A study conducted last year by the Munich-based Ifo Institute, an economic research institution, found that it would be better to invest in voluntary military service than to introduce universal conscription in Germany. The study, commissioned by the German finance ministry, warned that compulsory military service would be expensive and have a negative impact on citizens. The reported that forced conscription would worsen young people's financial prospects by delaying the start of their studies or careers. Carlo Masala, a professor of international politics at the Bundeswehr University Munich, meanwhile, believes that concerns about the economic consequences of a return to any form of conscription are "exaggerated." Even with compulsory military service, he expects that no more than 25,000 young people would be drafted each year. That would be significantly fewer than the 200,000 West German conscripts drafted at the height of the Cold War. Masala believes that the German economy has recognized "that it must engage in some positive way with defense questions" and that ultimately, it must "accept this."
Yahoo
06-02-2025
- Business
- Yahoo
Key German big-business lobbyist urges major pension reforms
Germany's influential Confederation of German Employers' Associations (BDA) business lobby called for gradually raising the country's retirement age, less than two weeks ahead of nationwide elections. The pension age should be linked to life expectancy, BDA President Rainer Dulger told dpa on Thursday. The pension system needs stable revenue from worker contributions, which is "why we need to make the retirement age more dynamic." "I don't want a discussion about whether it should now be X, Y or Z years until retirement. We should seriously consider linking the pension to average life expectancy," he said, urging a "broad debate" on the issue. "In the election manifestos and in the election campaign, the social security systems are being neglected," Dulger said. The big business lobby has previously provoked strong reactions in the past with similar demands. Under current German law, the retirement age for the standard old-age pension will be gradually raised to 67 without deductions by 2031. From 2024, the age limit will be raised in two-month increments, starting with those born in 1959. The standard retirement age of 67 will then apply to insured persons born in 1964 or later. Dulger was promptly criticized by the German Trade Union Confederation (DGB) and politicians from Chancellor Olaf Scholz's centre-left Social Democrats (SPD), which is closely linked to the labour movement. "If these are seriously supposed to be the employers' big ideas for a sustainable Germany, then the prospects would be bleak," said Anja Piel, a DGB board member. Anyone who wants to raise the retirement age is in effect cutting pensions, she added, "and that always hits those who have worked hard for many years the hardest." Dulger also called for new incentives to encourage people to keep working beyond the normal pension age. "Many would like to work longer, and people enjoy regular contact with colleagues, such as after their children have left home," he said. Dulger argued that workers should also favour reforms to the social security system, which also includes health insurance and old-age care benefits, because rising costs mean higher worker contributions which eat into take-home pay for employees. "Our social systems urgently need to be reformed. We all know that we are getting older and older. We all know that we will have more and more recipients of benefits - and fewer and fewer contributors," he said. "Work is only fun if it is well-paid and employees go home with a decent net income." "I would like to see a real debate on the future viability of our social security systems once a year in the German Bundestag," as Germany's lower house of parliament is known. "Today, almost everyone thinks it's political suicide to endeavour reforms here. But we have to get on with it," he said.
Shafaq News
31-01-2025
- Business
- Shafaq News
Germany's jobless rate hits 6.4%, vacancies decline
Shafaq News/ Germany's unemployment rate edged higher in 2025, as Europe's largest economy continues to weigh on the labor market, official data showed on Friday. According to the Federal Employment Agency, the number of unemployed people in Germany rose by 11,000 in January, after seasonal adjustments, bringing the total to 2.88 million. 'This figure came in lower than analysts' expectations of a 14,000 increase. However, the seasonally adjusted jobless rate inched up to 6.2%,' the agency added. With Germany's economic outlook remaining bleak, unemployment is projected to rise further throughout the year, surpassing 3 million for the first time in a decade by early 2025. The agency also reported that job vacancies fell to 632,000 in January, marking a 66,000 decline compared to the previous year, indicating weakening demand for labor. Monthly, the unemployment rate rose by 0.4 percentage points to 6.4%, according to the data. German media outlets quoted the president of Germany's Confederation of German Employers' Associations, Rainer Dulger, 'The labor market figures are an alarm signal. The economic and structural weakness of the German economy is hitting the labor market with full force.'
