AfD precisely diagnoses the bureaucratic rot, and the anti-european nature of the EU:

-death to small business via regulation

-green energy scam drives up cost of life, and shifts German businesses to places with less “green” energy like Poland or China

-more txation, more expensive life

-forced experimental medical treatments

-anti-family pro woke religious indoctrination of kids

-no free speech

-rule by bureaucrat (ursula, lagarde)

-proxy war with primary energy supplier

-country remains occupied by foreign military bases

You are absolutely correct in your perception of EU extra-national centralization of power (the opposite of localism) and rot being the problem.

Note that AfD is not alone. There are pro-European anti-EU parties in many European countries. Europeans are getting sick of getting poorer and demoralized by the day. European elections in summer should be interesting.