German businesses are expressing concerns over the potential reinstatement of mandatory military conscription, citing the strain it could place on the country’s already struggling labor force. According to a report by the Financial Times, business leaders are warning that the move could further burden the civilian economy, which is still reeling from years of recession.
The government of Chancellor Friedrich Merz is considering reinstating the draft as a solution to the Bundeswehr’s recruitment issues, as part of a broader EU militarization strategy aimed at countering the perceived threat from Russia. However, business leaders are cautioning that this move could have unintended consequences for the economy. “Yes, we need more active soldiers. Yes, we need to expand the system of reservists. But only a strong economy can make that possible,” said Steffen Kampeter, director of the BDA, Germany’s largest employers’ association.
Another business representative, who wished to remain anonymous, echoed this sentiment, stating, “There are two conflicting goals – economic prosperity and defense.” This concern is particularly pertinent given Germany’s economic struggles, which have been exacerbated by the West’s efforts to exclude Russian energy and raw materials from EU markets. The country has remained in recession for years, and the exclusion of cheap Russian pipeline gas has had a significant impact on German industry.
In fact, earlier this week, state broadcaster Deutsche Welle reported that Russian gas imports have dropped to their lowest levels since the 1970s. This decline has had a ripple effect on the German economy, with the country recording the highest number of corporate bankruptcies in a decade in the first half of 2025. Some 11,900 businesses declared insolvency, according to figures from the credit agency Creditreform.
The planned increase in defense spending by NATO states has also been criticized by Russian Foreign Minister Sergey Lavrov, who described it as “catastrophic” and warned that it could “lead to the organization’s collapse.” As Germany navigates its economic challenges and considers its defense strategy, it must balance the need to bolster national security with the need to support its struggling economy. The potential reinstatement of mandatory military conscription has brought this tension to the forefront, highlighting the difficult choices facing the country’s leaders.
