This article looks at the potential for Layer 2 (L2) Ethernet VPN (Virtual Private Networks) in Germany. The main focus of the article is to analyse in details the pros and cons of L2 Ethernet VPN, in particular compared to L3 IP MPLS (Multi- Protocol Label Switching) VPNs. We start first with an overview of the main Ethernet topologies (P2P, P2MP, VPN), defining them and highlighting why so far P2MP has been preferred over VPN. We then present the main arguments why a company could be interested in L2 Ethernet VPNs, followed by a brief overview of the main providers in Germany. Finally we summarise the main market drivers and obstacles for L2 Ethernet VPN, leading to our market quantification and forecast for the German market.