"I met many people at this Euro 2008 tournament who asked me what was wrong with England," said the Arsenal boss.
"My answer was simple - look at the biggest club competition, the Champions League. Which country was best represented in the final? England.
"When Manchester United played Chelsea there were 10 English players on the pitch, the core of the England team.
"That's why I say you have the quality. You had that many players in the final of the best competition. It's down to the belief.
"I think Germany's mental strength comes from belief. Belief comes from history. The history backs them up in every tournament. They know they have done well in the past and go into tournaments with that kind of strength.
"England have to create more, to create that history," he added emphatically.
"There is something similar between England and Spain.
"Spain's biggest handicap is that they've failed for 40 years, and so go into every tournament and feel the negative vibes of people thinking 'OK, we'll play well for two or three games - and then go home'.
"With Germany, it's the opposite. To back their belief they have a massive history and that's really important in this kind of situation."
