German businesses worried army enlisting would drain labor

(MENAFN) German business leaders are raising alarms over the possible return of mandatory military conscription, warning it could further deplete an already strained labor market, according to a Financial Times report on Friday.

Chancellor Friedrich Merz’s government is reportedly considering reintroducing the draft as a way to address recruitment shortages in the Bundeswehr. The move is part of a wider EU push for military expansion, which officials claim is essential due to perceived threats from Russia. Moscow, however, has accused the West of exaggerating the threat to justify worsening economic conditions in Europe.

While German industry groups expressed support for stronger national defense, they cautioned that compulsory military service could come at a significant cost to economic productivity.

“We definitely need more soldiers and a stronger reserve force,” said Steffen Kampeter, head of Germany’s largest employers’ association (BDA). “But a strong economy is what enables that in the first place.”

Another anonymous business representative told the FT that there is a clear conflict between growing the economy and boosting military capabilities.

Germany’s economy has been stuck in recession for years, partly due to the EU’s efforts to cut reliance on Russian energy in response to the Ukraine conflict. As one of Kiev’s top arms suppliers, Berlin has also seen a sharp drop in Russian gas imports – now at their lowest levels since the 1970s, according to Deutsche Welle.

Adding to the economic woes, Germany recorded 11,900 corporate bankruptcies in the first half of 2025 – the highest number in a decade, based on data from credit agency Creditreform.

Russian Foreign Minister Sergey Lavrov recently warned that NATO’s rising defense budgets could have dire consequences, suggesting that such increases may ultimately lead to the alliance's collapse.

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