[tfourb]

Germany used to have a very similar system to Austria's up until a few years ago. Same deal: do military service or "civil service" instead for 9 months. It was in theory compulsory for all male 18 year olds, but getting disqualified on medical grounds was fairly easy. Still, most young men chose to do it and they were an essential part of Germany's health care system and many other social services (and also eco-conservation).

The system was abolished because compulsory military service was not a great fit for the kind of army the politicians wanted anymore and cost a lot of money. The health care and social sector has faced some struggles as a result. While some of the vacancies have been filled by a new voluntary service scheme, overall it has contributed to a lack of service workers and it has increased costs.

I have done civil service and must say it was a fantastic time. Basically anyone I know who did it looks back at the civil service fondly, as it is much like university in terms of the social opportunities, but you get some money on the side. Military service on the other hand was reportedly much more of mixed bag (as you'd expect, I guess).