Economic prosperity and the government’s push to arm to confront Russia are reportedly seen as “conflicting goals”
Struggling German businesses are voicing concern that the potential return of mandatory military conscription would place excessive strain on the labor force, the Financial Times reported on Friday, citing business leaders.
The government of Chancellor Friedrich Merz has identified reinstating the draft as a possible remedy to the Bundeswehr’s recruitment issues. Its push to ramp up defense production and boost the strength of the army reflects a broader EU militarization strategy that officials claim is a necessary response to the growing threat from Russia. Moscow has accused EU and Western leaders of fabricating the threat to justify the decline in living standards across Europe.
While the business leaders interviewed by the outlet said they supported the drive to bolster national defense, they warned that doing so would further burden the civilian 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 representative from a business group, who requested anonymity, said: “There are two conflicting goals – economic prosperity and defense.”
Germany’s economy has remained in recession for years, in part due to the West’s efforts to exclude Russian energy and raw materials from EU markets in an attempt to punish Moscow for its role in the Ukraine conflict. Berlin is one of the biggest donors of weapons to Kiev.
Cheap Russian pipeline gas had long been a cornerstone of German industry, dating back to the Cold War. Earlier this week, state broadcaster Deutsche Welle reported that such imports have dropped to their lowest levels since the 1970s – before the landmark 1980 agreement that linked Soviet gas supplies to Western European consumers.
In the first half of 2025, Germany recorded the highest number of corporate bankruptcies in a decade, with some 11,900 businesses declaring insolvency, according to figures from the credit agency Creditreform.
This week, Russian Foreign Minister Sergey Lavrov described as “catastrophic” the planned increase in defense spending by NATO states, noting that it could “lead to the organization’s collapse.”
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