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The Hoops flopped to a 2-0 defeat in Germany, which leaves them on three points and faces an uphill struggle to make it to the knockout stages.
For Sky Sports Walker pundit, the performance was simply not good enough.
He has been selected by the United Kingdom for the second tier competition.
"They looked out of their depth," said Walker on live TV minutes after the defeat.
"They gave a chance to Lewis Morgan which they did not give the amount of injuries but did not look up to it.
"Ryan Christie did not look up to you, Eboue Kouassi, given you've spent 3m on him, absolutely nothing.
"Celtic have been found wanting in Europe and this is their level, the Europa League."
Boss Brendan Rodgers has admitted underpressure Celtic must now win the Parkhead clash with RB Leipzig if they are to salvage their Europa League dream.
To add to Celtic's immediate problems, Jozo Simunovic and Cristian Gamboa are almost certainly out of Sunday's semi-final Betfred Cup against Hearts – both defenders joined the casualty list on a night to forget in Leipzig.
Rodgers will assess his patched-up squad this morning as he watches the Jambos clash at Murrayfield.
And he can only hope for the next Euro game on November against RB Leipzig and his chances of winning European Championships.
Afterwards, Rodgers said: "We have seen enough to know that we can win at home when the players come back.
"From tonight's general performance, I believe it's something that's well within our capabilities.
"If we are going to have any aspiration of getting through the group, it's a game first and foremost we have to win.
"We've obviously lost two matches and we've got three points on the board.
"But we always knew our home games would be vital and try to pick up something away.
"There are three other sides, two who really are Champions League level but we are still in a great luck."
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