There are less prospective university applicants in Germany because of their tiered and somewhat controversial secondary education system. It does not have anything to do with tuition fees.
As for tuition fees, you can make a completely tax funded third level education system work. Developing countries do it all the time, successfully. You do this by restricting entrance to the brightest through a harsh selection process.
The problem with this is that in the long run you end up with a large percentage of the population who has only minimal education. People might sneer at somebody with a degree in English Literature but it does make a difference to live in a country where the majority have some tertiary level education experience, if only because they appreciate education more and can instil that sort of appreciation in their kids.
As for tuition fees, you can make a completely tax funded third level education system work. Developing countries do it all the time, successfully. You do this by restricting entrance to the brightest through a harsh selection process.
The problem with this is that in the long run you end up with a large percentage of the population who has only minimal education. People might sneer at somebody with a degree in English Literature but it does make a difference to live in a country where the majority have some tertiary level education experience, if only because they appreciate education more and can instil that sort of appreciation in their kids.