Applications
The key word in the applications of germs is locality: all local properties of a function at a point can be studied analyzing its germ. They are a generalization of Taylor series, and indeed the Taylor series of a germ (of a differentiable function) is defined: you only need local information to compute derivatives.
Germs are useful in determining the properties of dynamical systems near chosen points of their phase space: they are one of the main tools in singularity theory and catastrophe theory.
When the topological spaces considered are Riemann surfaces or more generally analytic varieties, germs of holomorphic functions on them can be viewed as power series, and thus the set of germs can be considered to be the analytic continuation of an analytic function.
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