To begin with, you could try not putting him in situations where he is too close to other dogs so that he won't react. Find a comfortable distance and train him to focus on you, ignoring the dog. Use positive reinforcement - praise/treat for desired behavour. As you and he excel, you could reduce the distance so that he is closer to other dogs and keep him focused on you, ignoring the other dog.
I always think with a reactive/unstable dog it is good to set them up for more successes than failures to help improve their confidence.
if your GSD is eating and eating and eating and losing weight - please consider testing for EPI.
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