The ex-Bayern Munich centre-back was speaking to Munich newspaper Münchner Merkur when he gave his opinion on Arsenal's chances against Bayern Munich as well as some of their players.
Babbel believes Arsenal will pose "no problem" for the defending Bundesliga champions. And his forthright opinions didn't end there, as the German also laid into two of his country's current stars, Podolski and Arsenal teammate Mesut Ozil.
Babbel believes Ozil is too weak on the ball and "needs to work on his physicality" to prove himself at the highest level.
Podolski meanwhile, was a failure in Germany because he didn't show the requirement work rate.
"I didn't think he'd make it in England to be honest," Babbel said as reported by the Daily Mail. "He was always far too lazy at Bayern and Cologne."
Arsenal take on Bayern Munich in the first leg of their Champions League last-16 tie on Wednesday evening at the Emirates Stadium.
The Gunners exited the competition last season after defeat to the Bavarian giants - a loss that was largely the result of a thoroughly disappointing home performance.
Bayern Munich won 3-1 that day against Arsenal, and despite a 2-0 victory at the Allianz Arena for the Gunners, they exited on away goals.