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Gareth Southgate’s men triggered wild scenes of celebration inside a packed Wembley when defender Luke Shaw scored an early goal.
However, Italy came back into the match and equalised in the second-half, with the two sides needing a penalty shootout to decide the tournament.
Marcus Rashford, Jadon Sancho and Bukayo Saka all failed to score from 12 yards, meaning the trophy went to Rome.
Amid an outpouring of gratitude for England’s vanquished players, Adele was among the famous faces thanking the team for a captivating tournament.
The London-born singer watched the final from the US and shared a picture showing her in her England shirt after the game.
“You did us so proud!” Adele wrote. “You brought our game home and brought us all together.”
Dua Lipa said she was watching the game during a video shoot and shared a picture of her impromptu set up.
After Italy had been declared champions, the pop star posted a picture of Saka and wrote: “All the boys made us so proud!!!!! Well done on such a great game!
“We love you England we’ll bring it home soon enough.”
Former Oasis singer Liam Gallagher sent a message of support to 19-year-old Arsenal star Saka, whose penalty was saved by Italian goalkeeper Gianluigi Donnarumma.
He tweeted: “Love saka.”
— Liam Gallagher (@liamgallagher) July 11, 2021
He added: “It’s all good Bruv I love you kid we go and smash the World Cup. It is what it it is.”
Hollywood actor Orlando Bloom shared a smiling selfie and wrote: “Heads up England! So much to be proud of.
“You are a team to beat, a team we love and support and a team we respect.”
Idris Elba shared a picture of Saka while model Jourdan Dunn posted snaps of all the players who failed to score a penalty, as well as Raheem Sterling, and wrote: “KINGS.”
Tom Felton, who played Draco Malfoy in the Harry Potter films, shared a selfie of him looking blue in his England shirt and wrote: “YeUgGHhh.”
He also congratulated Italy.
Stephen Fry wrote : “Alright, football gods, I’ll wait another 55 years then. But I warn you, unless biotech comes up with something impressive, I’ll fairly certainly be dead…
“Bah, grr, poo and bother.”
Singer Rebecca Ferguson tweeted: “Well done England and congratulations Italy It was a close game and the players played well!
Well done England and congratulations Italy ??????????? It was a close game and the players played well! Sending love to our England team, you did us all proud ❤️ Don’t feel down everybody is proud of you ? ❤️??????? #EURO2020
— Rebecca Ferguson (@RebeccaFMusic) July 11, 2021
“Sending love to our England team, you did us all proud. Don’t feel down everybody is proud of you.”
Meanwhile Nigella Lawson said: “Congratulations Italy. And thank you Gareth, thank you lads. You made us proud.”
Former EastEnders star Ross Kemp, who is famous for sharing his jubilant videos on social media after England goals or victories, shared a subdued clip on Twitter.
He said: “So the ride is over. It has been a pretty fantastic display by England. Congratulations to Italy.
— Ross Kemp (@RossKemp) July 11, 2021
“England, you have inspired a nation. You have made us feel happy.
“It’s sad it ended this way but think of all the teams that didn’t make the final.
“I’m pretty sure that I speak for nearly every English fan when I say that we still think that you are a new England side and you can only get better, so thank you Gareth, thank you England.”
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