I think it would be much better to provide a one year paid stipend so that a parent can be home with the children during their tender years.
This entire structure is set up to keep the boss happy while a stranger raises your child during their most formative and vulnerable years.
And once the little guy was a year old, daycare for not quite enough hours to work full time (7am - 4pm) was a mere 500 EUR/mo, and would have been less had we not been a 1.5 engineer couple. It drops to 200 EUR/mo when the kids turn three. For awhile, Bavaria was considering giving a rebate to families who didn't use preschool, but then I think they realized that the people whose minds would be changed by an extra couple hundred Euro per month in their pockets were a lot of the people who this rather conservative state really, really wanted to have send their kids to preschool as soon as possible.
This goes hand in hand with very strong protections for parents choosing to work part time. My employer had to allow me to drop to part time for up to three years (prorated salary, of course), with an option to extend it until my kid is eight.
Result? I'm still working in the same department and position I was before the kid, but spend several hours a day with him.
He took to daycare like a duck to water and still loves preschool; it turns out that my little guy is way more social than either of his parents.