Travis Lankford here again. Enjoy.
First and foremost, Germany should not panic; however, they should be worried. When any follower of international soccer thinks about the German national team (or West Germany), they think of similar attributes to the German people. Industrious, efficient, and resolute are usual attributes for the German team and in particular their defense. Germany had an impeccable first half but the way they folded needs to be addressed.
The eventual failing of the German defense boils down to form. Holger Badstuber and Per Mertesacker have either been playing in a different position or haven't had regular minutes for their club side. Both were at fault for crucial goals and the former looked completely out of place in the center of defense. It is still unsettling at how easily they capitulated and let in four goals in one half. An honorable mention goes out to Jerome Boateng for thinking that he had no defensive responsibilities during the game. Franz Beckenbauer must have been face-palming at your lack of any initiative to defend.
Germany should be fine but the defensive collapse against Sweden was a thing of legend. Sweden finally played up to their potential that I predicted would show up to the Euros this year. Germany should not be in panic mode and they should rebound easily with such a great attacking threat. However, that was one of the worst displays by a German national team defense ever. It will be interesting to see how this German defense plays with Hummels or Badstuber and Mertesacker in form against a top international side. Until then, Stockholm must be rocking.