As well as updating the situation:
We tried to introduce recurring payments through PayPal for German customers (the business itself was also based in Germany) and faced the same problems as the OP described above. PayPal support informed us (by phone) that the RP is still not available in Germany, without a date when this could change.
The reason some (USA) companies, such as Twitch, actually support subscribing to German user channels (even without credit cards), because they have a transaction volume of more than $ 5,000 per month. For your PP account to be enabled for RP with German customers, you must apply for PayPal and be a fairly large company.
The reason is that PayPal basically gives the company access to customer accounts, so theoretically they can deduct money at their discretion (if you look closely at the RP express check API, you will see that the amount with which you actually create a recurring payment profile is not the one that the user agrees when entering PayPal).
So in conclusion: as of December 2014, recurring payments are not supported for German buyers, and there is no publicly available ETA if this could change.
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