What is the correct course of action in this situation?

In this situation, the correct action is to wait until the oncoming road user (the blue van) has passed. According to German traffic rules, when a vehicle is parked partly on the roadway and the road narrows as a result, vehicles coming from opposite directions must take turns to pass safely.

You must wait because the oncoming vehicle is already very close to the narrow section. Taking priority in this case would be unsafe and against the rules, as you should allow the vehicle that arrived first or is already in the narrow area to pass before proceeding.

The option of agreeing who takes priority cannot be relied upon, especially in traffic where clearer rules apply to avoid confusion and accidents.

Remember, always observe and yield appropriately when encountering obstacles that restrict road width from the opposite direction. This ensures smooth traffic flow and safety.