If you want to read the official press statement and not something from "Straitstimes" from Singapore, who are not the experts for german politics:
The German government remains convinced that only a negotiated two-state solution will bring lasting peace and security for Israelis and Palestinians.
It continues to regard the recognition of a Palestinian state as one of the final steps on the way to realizing a two-state solution. Israel's security is of paramount importance to the German government.
In this respect, it is not planning to recognize a Palestinian state in the short term.
The German government's priority now is to achieve overdue progress on the most urgent issues:
There needs to be a ceasefire in Gaza now. The hostages, including German nationals, must be released. Hamas must be disarmed; its terror unleashed not just on October 7 must end.
Israel must immediately and drastically improve the catastrophic humanitarian situation in Gaza. It must provide the suffering civilian population with urgently needed supplies in a humane manner.
A viable political perspective for Gaza is necessary to turn a temporary ceasefire into lasting peace.
There must be no further steps towards an annexation of the West Bank.
The German government is in constant contact with the Israeli government and its international partners on this issue. It is prepared to increase the pressure if no progress is made. The German government is continuing its aid to create the conditions for Palestinian statehood; this includes supporting the Palestinian Authority. These steps are absolutely necessary to end the suffering of the civilian population. They are also necessary in order to keep open the prospect of a two-state solution and thus lasting peace in the Middle East. The German government agrees with France and the UK on this, as do its partners in the region. This applies regardless of the well-known differences of opinion on the question of the right time for recognition.
https://www.bundesregierung.de/breg-de/suche/2290066-2290066