Germany faces its most consequential election in decades on Sunday as two years of economic decline fuel a surge in far-right support, with the anti-establishment Alternative for Germany, or AfD, party emerging as the country's second-strongest political force.

In regions such as Gelsenkirchen, part of the industrial Ruhr Valley, residents and business leaders are advocating for substantial investments in infrastructure and energy to rejuvenate the economy and transition to greener technologies, Reuters reported.

The city exemplifies a wider political shift taking place across Germany's industrial areas, where poor economic conditions have helped the AfD's message take root.

The party has gained strong support among frustrated factory workers and laborers, including former left-wing voters and, surprisingly, some immigrant groups, who share a common anger over how mainstream parties have handled both economic problems and social issues.

This change in working-class voting patterns matches what is happening across Europe, where anti-establishment parties are growing stronger in former industrial areas.

The general election has pushed the need for structural reforms into sharp focus, particularly the debate over Germany's constitutional debt brake, which is a fiscal constraint that critics argue has hampered essential public investment.

Germany's four main chancellor candidates — incumbent Chancellor Olaf Scholz of the center-left Social Democratic Party, or SPD; Friedrich Merz of the center-right Christian Democratic Union, or CDU; Robert Habeck of the Greens; and Alice Weidel of the AfD — took part in a televised debate on Sunday, the last before the general election.

During the debate, Merz signaled a willingness to reconsider the country's strict spending rules, acknowledging growing pressure to boost investment and stimulate economic growth. He also distanced himself from the far-right AfD while promising tax cuts to revive growth.

The conservative alliance of the CDU and its sister party the Christian Social Union (CSU), at 30 percent in the polls, faces competition in voting from the AfD, at 20 percent, which has called for stricter immigration controls and a reversal of climate policies. Scholz's SPD, at 15 percent, has defended its economic record despite criticism over high energy prices.

The Greens, at 14 percent, are pushing for increased environmental investment. All candidates except Weidel reaffirmed support for Ukraine.

Analysts expect Merz to form the next government with either the SPD or Greens as junior partners in a coalition, and Merz stated explicitly that he is open to coalition talks with the two parties.

With 30-40 percent of voters still undecided just a week before the election, the outcome remains uncertain.

But behind the scenes, some politicians are planning ahead. "Of course, we will have a reform after the election," a conservative leader of a German federal state told Reuters, speaking on condition of anonymity due to the sensitive nature of the issue.

Merz criticized Scholz's policies, particularly the nuclear power shutdown and new supply chain regulations.

"We have to get out of this recession," said Merz, calling for the "bureaucratic monster" to be brought under control and for corporate taxes to be lowered.