At the end of the summer of 1943 the battle of Stalingrad is about to start. The outcome in the East is far from certain.
The battle of Stalingrad started in summer 1942. The German forces were encircled in November 1942 and surrendered in February 1943.
As to Italy, the best the Germans could hope for was a delaying action.
A year earlier the Germans had been trying to take Egypt. By the end of summer 1943 they were merely trying to hold the line in Italy.
By the summer of 1943 the Germans had abandoned the offensive. At best they were trying to hold the line, in other areas they were just trying to slow the pace of retreat.
If you look at the aims of German operations each year their position becomes clear:
1939 - Defeat Poland
1940 - Defeat France, Britain, Belgium and Netherlands
1941 - Defeat the Soviet Union
1942 - Capture the Caucasus and Egypt
1943 - Shorten the lines at Kursk and hold the line in Italy
The Luftwaffe was on the road to defeat in 1943 but it most certainly was not defeated. You could easily argue (as Williamson Murray does quite convincingly) that it had been on that road since 1938/9.
From Irving's biography of Milch:
When the ministers and gauleiters assembled on Hitler's instructions in
Berlin on August for Dr Goebbels to 'inject some cement into them', Milch
repeatedly interrupted a discussion on the war in the air with the almost treasonable
outcry, 'We have lost the war! Finally lost the war!' Goebbels had to appeal
to his honour as an officer before he would quieten down, and the minister
complained to his staff afterward, 'I would just like to see one of my state secretaries
dare behave like that however right he was!'
During the night the British attacked Hamburg yet again. 'My own view
is this,' Milch lectured to the silent officers who gathered in his ministry. 'It's
much blacker than Speer paints it. If we get just five or six more attacks like
these on Hamburg, the German people will just lay down their tools, however
great their willpower. I keep saying, the steps that are being taken now are being
taken too late. There can be no more talk of night-fighting in the east, or of
putting an umbrella over our troops in Sicily or anything like that. The soldier
on the battlefield will just have to dig a hole, crawl into it and wait until the attack
is over. What the home front is suffering now cannot be suffered very
much longer.' That day he cabled Göring in these terms: 'It is not the front
which is under attack and struggling for survival, but the home base, which is
fighting a desperate fight.' When General Meister, deputy Chief of Air Staff,
declined his suggestion that two idle long-range fighter squadrons should be
taken out of the eastern front and sent back to the Reich, Milch reproached
him: 'I keep getting this feeling that we are all sitting out on a limb. At this limb,
the British keep sawing away! Here at home I can hear the rasp of the saw. You
out there, Meister, are farther away, and are deaf to it.'
The situation of the Luftwaffe was the same as for Germany: at best they sought to hold the line in some areas, others they practically abandoned.
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