A Baltic fleet and German resource priorities

Should Germany have concentrated on a Baltic fleet and used resources committed to the Atlantic war against the Soviet Union instead?

Possibly, but Germany treated the Atlantic as its main naval route for influencing and threatening Britain.

The proposed alternative would match Germany's limited resources to a fleet intended for the Baltic, then redirect some Atlantic-war expenditure toward the conflict with the Soviet Union. The reply allows that the eastern diversion might have helped. Germany, however, treated the Atlantic campaign as its main naval means of influencing and threatening Britain. The exchange leaves the counterfactual open because it does not compare specific ship designs, operational requirements, or resource totals.