Liverpool boss Jurgen Klopp believes Marco Silva has built the strongest Everton squad of recent years and thinks the Toffees would regularly qualify for the Champions League in other European countries.
Everton travel to Anfield on Sunday, live on Sky Sports Premier League, in search of their first Merseyside derby win since 2010.
Silva's side are just six points off the Champions League places this season and Klopp believes Everton are as formidable an opponent as they have ever been since his arrival at Anfield.
"He [Silva] has the best squad, that is how it is," said Klopp. "He has brought in players he wanted. Richarlison - what a player he is.
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"[Theo] Walcott came in last year, Bernard came in this year, [Andre] Gomes came in this year, [Yerry] Mina came in this year.
"Since I've been here Everton has always been really busy but now it is the best-tuned squad, 100 per cent.
"Now they have creativity, speed and good organisation. (Seamus) Coleman is back and fit, (Michael) Keane is settled and fit, he's been a brilliant player, and (Lucas) Digne is like a young Leighton Baines.
"And of course they have England's No 1 in goal. That is a proper squad and it would be in all leagues in Europe.
"I am 100 per cent sure they would be a European team in whichever competition, in England it is quite difficult.
"But their development and improvement is obvious."
Liverpool will be without club captain Jordan Henderson for the derby, with the midfielder suspended following his red card against Watford.
However, Klopp insists he has enough midfield options to cope without the England international.
"We knew it after the Watford game. We will not miss him because we knew he was not going to play," said Klopp.
"We have to play without him, that is how it is. As long as the others are fit then we have solutions.
"As a person he is in the dressing room, just not on the pitch. Before the game he can be in the dressing room and do whatever he does in other games."