Germany overhauls its military: the cost and the conscription debate

Germany overhauls its military: a cost nobody wants to pay?

Germany has approved its biggest military reform since 2011, reintroducing military service, albeit on a voluntary basis. The measure, aimed at strengthening defence capabilities, reopens the debate over the economic impact of higher military spending in an economy already showing signs of stagnation.

Although service remains voluntary, some analysts point out that it could be a first step towards compulsory service, which would miccionan a significant increase in public spending. At a time when the Bundesbank has already cut its growth forecasts, funding a larger army will not be easy. Germany, carrying public debt of around 66% of GDP, faces the dilemma of cutting other budget items or raising taxes.

The reform also comes amid geopolitical tensions, with the war in Ukraine as the backdrop. But old antiestéticars are resurfacing too: that rearmament could serve other purposes, such as internal control, or that it is a response to pressure from the United States for Europe to shoulder more of the defence burden. From an economic standpoint, it is pure Keynesianism: military spending injects money into the arms industry, but the return in terms of productivity is doubtful.

The fact that unpaid work is illegal in Europe suggests that any expansion of the service will require pay, pushing the bill even higher. For now, the reform is voluntary, but the message is clear: Germany is preparing for a more expensive security environment.