Everyone in Germany....over the age of 16....has to have one. Cost? Students: 22.80 Euro. Everyone else: 28.80 Euro.
Necessity? Basically, any government agency....any policeman....any attempt to use a public service where identity is important....would have to produce the document. It's generally regarded as one that you need to carry on your person when you leave the house. Absolutely on your person? No. If the police stop you and want to ID you....and you say that you left it at home, then if this gets to a must-have situation....they could drive you back to the house and ask you to retrieve it.
Use in the EU? That's the curious thing. If you travel outside of Germany....the ID card serves as a passport card (at least with the 28 member unit of the EU).
When did the obligation start? Shortly before WW II, the Nazis made it into a mandatory thing.
Required for voting purposes? Yes. If you go down to the polling station, they will ask for the ID card. You have to produce it.
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