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Earlier this year German defence chief Gen Carsten Breuer warned that the Western Nato alliance had to prepare for a possible Russian attack within four years.
Mr Papperger said he had "no glass ball" about the future but agreed Germany had to be "ready in '29".
When they formed a coalition earlier this year, Merz's conservative CDU/CSU and the centre-left Social Democrat SPD agreed to re-introduce military service which would be voluntary "to start with".
From next year, all 18-year-old men and women will be sent a questionnaire to assess their interest and willingness to join the armed forces. It will be mandatory for men and voluntary for women.