German voters will go to the polls this weekend in a national election whose outcome could change the future of Germany and the euro zone. With one day of campaigning to go before the votes are cast on September 22, the outcome of the election and its potential impact on Europe is still uncertain, according to analysts and voter polls.
According to the latest polls, Merkel's conservative lead has narrowed ahead of the vote on Sunday. Merkel and her conservative CDU/CSU coalition would receive 38 percent of the vote, an INSA poll showed on Thursday. Meanwhile, while the coalition's junior partner, the Free Democrats (FDP), would receive 6 percent of the vote giving the coalition a combined 44 percent -- not enough to give them a majority in parliament,
INSA's poll showed that the main opposition social democrat party (the SPD), led by Peer Steinbrueck, had 28 percent of the vote, while the Green party had 8 percent of the vote.
One potential upset could be the anti-euro Alternative fur Deutschland (AfD) party, which has hit the 5 percent threshold enough to gain a seat in parliament, the poll showed. The INSA poll is broadly matched by a telephone poll of voters by public television network ZDF.
(Read more: How does Germany's electoral system work?)
If the polls are borne out in the public vote, Merkel would likely return to serve a third time in office but could be forced into forming a "grand coalition" with her rival Steinbrueck and his center-left party.
This could mean a change in policy for Germany, Europe's biggest economy and a powerful influence in the 17-country group of countries that use the euro. The country has drawn criticism over its insistence that harsh spending cuts -- rather than measures to encourage growth – are the answer to the euro zone's crisis over too much government debt.
A "grand coalition" could cause Germany's policy towards Europe to be more "constructive and euro-friendly," Sebastian Dullien, a professor for International Economics and senior policy fellow at the European Council on Foreign Relations told CNBC on Friday.
"In a grand coalition, Merkel will have much more leeway to do what it takes to save the euro than in the current coalition."
However, other analysts predict the elections will likely mean "more of the same" in terms of Germany's policies towards its debt-ridden southern euro zone neighbors.