According to a report by the Handelsblatt, citing a finance ministry document

The report notes that the government sees a "high risk" of a no-deal Brexit taking place, adding that preparations for such a scenario are "largely completed".

I don't doubt that they won't move their stance on the Brexit withdrawal agreement/backstop but given a choice, I reckon they would still rather side with an extension than risk their own economy falling deeper into a sinkhole.