What is the right course of action now?

In this situation, the traffic lights are flashing yellow, which means they are not controlling the traffic. In Germany, when the lights are out or blinking yellow, you must follow the posted traffic signs instead. Here, there is a “Give Way” (Vorfahrt gewähren) sign, which means you have to allow all cross traffic to go first before you enter the intersection. That’s why the correct action is to yield the right of way to any vehicles on the cross street. Waiting for a change of lights or driving through the intersection quickly is incorrect; you must always obey the “Give Way” sign when the traffic lights aren’t in active operation. Recognizing this rule will help you handle intersections safely if the lights are not working or are in yellow flashing mode.