Nothing to do with the government in germany in the first place. Companies do hire foreign pilots, in fact we have quite a few americans (and other nationalities) on our seniority list. However you do need the right to live in germany and have to be fluent in german with nearly all of the airlines here as all intra-company communication is made in german.
The job situation however is quite bad at the moment with nearly no hiring going on. Aerologic hires but would pay you around 45k (after typerating deduction) a year and they told applicants at a recent screening that they decided their cockpit language would be german (no other german airline has that as far as i'm aware) and they have around 4000 applications allready for around 100 open positions. Air Berlin is currently hiring too and with your experience you would get a guaranteed minimum per year of 53.7k plus benefits (LoL, pension scheme etc), however they too have thousands of applications (rumours in the company are around 5000 so far) for around 120 open positions. Both airlines only hire First Officers, time to left seat is pretty much undetermined.
Anyway, best of luck but the situation looks grim anywhere i guess.