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.