AfD leader Alice Weidel presented a plan in Strasbourg to turn the EU into a loose federation of sovereign states, saying Germans should vote to leave if changes are not made.
The strategy paper, "Sovereign States, Common Europe", will end direct elections to the European Parliament and appoint national parliaments members of parliament.
It will abolish the European Commission's exclusive right to propose laws, leaving it with an administrative role, make the European Council of National Leaders the main decision-making body, and replace the European Court of Justice with an arbitral tribunal.
"The European Union is no longer a group of sovereign states," Weidel said, adding that "national parliaments and governments should take over the decision-making process." The paper also calls for deep cuts to the EU budget, a "fundamental overhaul" of the euro, and the reversal of net zero targets and a 2035 ban on new petrol and diesel cars.
If an AfD-led government cannot win "fundamental changes", the paper says "the German people should then decide for themselves which way Germany should go", meaning a possible Dexit referendum.
This is a change in tactics from the AfD's previous open support for leaving the EU, with an eye on the German elections in 2029.
EU mainstreamers rejected the plan as unworkable.