In December 2021, the European Commission published a proposal for a Council Recommendation on a European approach to micro-credentials for lifelong learning and employability. Although in use in higher education and in English-speaking countries, the term “micro-credentials” has remained unknown in vocational education and training in Germany up until now. Much is still open and unclear, and no uniform understanding or notion exists with regard to the role which they could or should play in the member states. One of the outcomes of the Europe-wide consultation on this Recommendation is that such an instrument is not without controversy in vocational education and training. The present article looks at the core elements of the European proposal and identifies areas of potential and problem areas associated with the use of micro-credentials for VET. This is particularly highlighted via a reflection on possible developments of micro-credentials in the German VET context.