Italy have renewed themselves since their dismal first-round exit in the 2010 World Cup, replacing the old guard of Fabio Cannavaro and co. with a new, younger-looking side featuring the likes of Sebastian Giovinco, Claudio Marchisio and Leonardo Bonucci.
Ranocchia, 23, is in the thick of the revolution and credits coach Cesare Prandelli for reviving the national side since taking over Marcelo Lippi last July.
He told Uefa.com: "We came out of the World Cup having messed up but the coach has restored our enthusiasm.
The Inter Milan man feels that Spain are in prime position to continue their dominance in Euro 2012 after their masterful World Cup win in Africa, but he isn't ruling out his own country's chances in Poland and Ukraine.
He added: "I think the favourites to win the Euros are Spain as they won the World Cup and they express the best football on a worldwide scale,"
"But we are working towards this, our objective is to play a good European Championship and hopefully win it.
Italy have qualified for Euro 2012, topping Group C with 22 points. They will travel to play Serbia on Friday before hosting Northern Ireland four days later.