The Mannschaft legend believes his home country are one of the frontrunners in Poland-Ukraine but warned that the side must first break the "knockout-round jinx"Germany are the favourites to win Euro 2012 after reigning champions Spain.
The 1990 World Cup winner believes that the Nationalelf's stars have shown their abilities over the course of the 2011-12 campaign, and stressed that Bayern Munich's good performances in the Champions League is a strong indication that Germany have what it takes to go far.
"There will be many theories on who is the favourite to win the crown this year and I have no hesitation in sticking my neck out to put my home team, Germany, next to defending champions Spain among the strongest title contenders," Matthaus stated in his column for The Times of India.
"It’s not just the patriot in me who is saying this but if we analyse the German squad and the way the players have been performing over the years, anyone would be willing to bet their money on Joachim Low’s lads, provided they are able to break the knockout-round jinx.
"Just like Spain, where Barcelona provides the core of the team, Bayern Munich have been the supply line for the national squad and the fact that the Bavarians are in their second Champions League final in three years show that most of their stars are in great form."
Germany start Euro 2012 with the Group B match against Portugal on June 9.