Euro 2012: Italy Faces Spain in Sunday's Final

WARSAW (Reuters) - Italy extended their remarkable stranglehold on Germany when two superb first-half goals by Mario Balotelli gave them a 2-1 win in an excellent Euro 2012 semi-final on Thursday and a place in Sunday's final against Spain.

Balotelli connected with a curling Antonio Cassano cross to head the opener after 20 minutes then ran on to a long Riccardo Montolivo pass before lashing in an unstoppable second after 36 as the Italians took full advantage of some loose defending.

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Three times champions Germany, who had never beaten Italy in their seven previous major tournament meetings, rallied late in the game and Mesut Ozil converted a penalty in added time after Federico Balzaretti had handled in the area but it came too late.

Germany had earlier gone close when Gianluigi Buffon touched a Marco Reus free kick onto the bar after 62 minutes and had a deflected Mats Hummels shot cleared off the line in the early stages. But Italy grew in confidence and could have added a third goal when Claudio Marchisio twice shot just wide.

The final against holders and world champions Spain in Kiev is a rematch of the teams' group meeting that finished 1-1.