On 1 July, the Federal Cabinet adopted the draft Reserve Strengthening Act. DIHK Head of Economic Policy Rainer Kambeck commented:
01/07/2026 - "The commercial sector supports the government's goal of strengthening the reserve. A strong reserve must be a central component of the German Armed Forces to contribute significantly to national and collective defence as well as to the stability of the business location. However, the German Armed Forces and the economy are increasingly drawing on the same workforce pools. Existing labour shortages, especially in technical, industrial, logistical, IT, and security-relevant occupations, are already having significant economic repercussions. These shortages would remain significant even without the additional demand from the Bundeswehr due to the numerical decline of the working-age population.
These challenges should primarily be addressed through smart collaboration between the German Armed Forces and the economy. For both sides, the predictability of available personnel is crucial. Innovative, flexible approaches that meet the interests of both the German Armed Forces and the economy are needed. The mandatory reserve duty stipulated in the law is not the right approach for constructive cooperation. From the perspective of companies, it would be better to maintain the dual voluntariness of reservists and their employers. Predictable reserve duties and practical compensation options enhance the attractiveness of leave arrangements for employers as well. This is the way to align the needs of the German Armed Forces and employers. As was done with the new Military Service Act, the focus here should initially be on improving attractiveness rather than imposing obligations."
Moreover, the law still requires adjustments: the German Armed Forces should announce call-ups at least three months before the reserve duty to enable companies to organise replacements early. The level of compensation for substitute forces and the funding amounts for SMEs should also be more closely aligned with labour market realities. Both are particularly crucial for SMEs, as these businesses find it especially challenging to compensate for absences in their operations."
- Relevant in topic:
- Economic and Fiscal Policy
- Key areas:
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- Defence
Released 01.07.2026
Contact
Petra Blum
Spokesperson