"I believe we are out of Europe because of what happened in the first game with Basel at Anfield," said Houllier.
"They got a draw and were very lucky not to have lost because we had so many chances.
"But they have finished above us in the group, so they deserve to go through to the next round. I congratulate them."
"We could and should have stopped those first half goals, certainly the first two.
"But when I got to them at half-time I told them to go out and show their pride, score one and then see what happens.
"We did superbly well to hit back with three goals after that first half, but we knew we couldn't let in three goals like that in the first period.
"We just didn't compete enough in that period, but I told the team never to give in, just keep believing that you can do it.
"Score one and everything could change. That is almost what happened," he added.