There are rare occasions when the genitalia do not properly form in the womb. Since male and female genitalia both develop from the same beginning set of cells, if can make identification of gender difficult in these instances.
What normally happens is the child is given a DNA to determine gender and reconstructive surgery is done to crete genitals that match the DNA.
I guess the Germans would prefer to let the child suffer and later decide for him or herself.
I have read tabloid articles where the teenaged or adult transgendered brought suit against the doctors and/or their parents for the corrective surgery on the grounds that they were denied the freedom to either choose or to simply live as they were born. They claim the corrective procedures were the cause of their suffering.
From what I have read, it is easier to make this correction at birth than to wait until the child is physically mature. However, feelings trump logic in this world today.
I wonder what percentage of those born intersex who had the surgery right after birth are silent and content with the choices made for them? If their hormones are at odds with their appearance, I could see where there would be psychological and perhaps even physical discomfort.