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Study Finds Volunteer Recruitment More Cost-Effective Than Conscription for German Military

The ifo Institute concludes that higher salaries for volunteers would address Bundeswehr personnel shortages at a lower economic cost than reinstating conscription.

  • The Bundeswehr faces a critical personnel shortage, which is seen as a major challenge to Germany's defense capabilities.
  • A study by the ifo Institute finds that recruiting volunteers with higher salaries is more cost-effective than reinstating conscription.
  • Reinstating conscription would increase active soldiers by 195,000 but cost the government 3.2 billion euros annually, with additional economic costs of 17.1 billion euros per year.
  • A volunteer-based model would raise government spending to 7.7 billion euros annually but reduce economic costs to 9.4 billion euros per year.
  • The ifo Institute argues that conscription delays young people's entry into the labor market, resulting in higher economic costs due to delayed human capital and wealth accumulation.
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