The former Real Madrid star believes that La Roja are more than capable of continuing their dominance of the international game by triumphing again at the European Championship
The reigning world and European champions need only a point from their remaining game in Group C, against Croatia, to seal their place in the knockout stages of Euro 2012.
Once they safely progress to the last eight, Hierro is in no doubt that anything is possible for Spain's star-studded line-up.
"This is a personal impression, but this national team is experiencing a special moment," the Real Madrid legend told RMC.
"They have great players as the team is made of all the stars from Real and Barca, who are certainly the two biggest clubs in the world, and more players like [David] Silva. We really are dealing with the greatest generation in Spanish football of all time.
"It's never easy to win the Euros but it is true that this team has great confidence. There has been no team that has succeeded in the Euros, World Cup and Euros again. Anything is possible with our side.
"There are big teams present here such as Italy, England, Germany, but Spain are confident."
Hierro can see no reason why Spain's dominance of the international game cannot continue, particularly now that coach Del Bosque has signed a new two-year contract.
"I am very, very satisfied," the 44-year-old enthused. "He has had fantastic results. I think it's ideal for the team as it gives them tranquilty. It will be difficult to find a better coach than Vicente del Bosque."
Hierro, who could play in both midfield and defence, was capped 89 times by his country, scoring an impressive 29 goals.