The 1990 World Cup winner feels that the German national side have what it takes to dethrone reigning champions Spain at this summer's tournament in Poland and Ukraine
The Nationalelf were beating 1-0 by Spain in the Euro 2008 final, but Matthaus is confident that the Germans have the quality to go all the way this summer.
"Germany came through the qualifying with a perfect record, having won all their group matches and booking their Euro berth with two matches in hand," Matthaus stated to The Times of India.
"Joachim Low’s side has gone from strength to strength since their semi-final loss in the 2010 World Cup against Spain and there is no doubt in my mind that they can dethrone the World and European championship if they play to their potential."
The former Germany international then went on to single out Netherlands as favourites as well, while not ruling out a surprising performance from Italy or France.
"Apart from Germany, Spain will be wary of the Dutch Armada with the likes of Robin van Persie and Arjen Robben in fine form this season.
"I would also not rule out a challenge from the Italians and French out despite their below par performance in the qualifying. Both the teams are known to raise their bar in major tournaments and that explains why they have etched their names in the annals of Euro and World Cup."
Euro 2012 kicks off on June 8 with the Group A match between hosts Poland and Greece.