The La Liga has become something of a two-horse race in recent years, with Valencia the last side to lift title outside the two Spanish heavyweights in 2004.
Since then, Barcelona have triumphed on five occasions and reigning champions Real have won three times.
And such is the quality amongst their ranks, Real's all-time leading goalscorer Raul believes they would be a match for anyone.
"The problem lies not in the league," Raul told Doha Stadium Plus. "Manchester United are a great team in England, but right now Barcelona and Real Madrid are the two best teams in the world.
"It is normal then the other teams are struggling to keep up with them .
"If Real Madrid and Barcelona played in England, it would be a race of two.
"At the moment Real Madrid and Barcelona are the best. The gap could be reduced in coming years."
The 34-year-old, who left Real for Schalke in 2010 after scoring 228 goals with the Bernabeu outfit, is now with Qatar club Al Sadd.
He last played for Spain in 2006 but thinks they are on course to make history this year.
No country has retained the European Championship trophy either side of winning the World Cup, although both France and Germany have held the two trophies at the same time.
World and European champions Spain now have the chance to break that record at Euro 2012.
Raul, who scored 44 goals in 102 appearances for the national side between 1996 and 2006, acknowledges they must overcome some tough challenges in Poland and Ukraine, however.
"It will be difficult for Spain," he added. "In history, no country has won the European Championship, World Cup and Euros again.
"I want to see Spain make history, but they know they will face a major challenge, mainly from Germany, Holland and France."