Would Germany still build a surface fleet?

Would Germany still bother with a surface fleet in the 1930s if the Royal Navy were much larger?

A surface fleet remains possible, but its composition and Plan Z would have to respond to a larger British force already in service.

The answer allows Germany a surface fleet while leaving its design uncertain. It first notes that submarine construction faced later restrictions, so switching immediately to a large submarine force is not assumed to be straightforward. Plan Z would then have to reckon with about twenty British capital ships and an ongoing construction programme. The counterfactual changes the force Germany would face without determining which ships German leaders would order.