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World and European champions Spain overcame Italy 7-6 in a penalty shootout after their Confed Cup semifinal ended goalless in Fortaleza, Brazil, on Thursday.
Substitute Jesus Navas converted the winning penalty past Gianluigi Buffon after Italian defender Leonardo Bonucci skied the 13th penalty of the shootout with the score level at 6-6 at a spellbound Estadio Castelao.
All the previous 12 penalties had been converted with players from both sides displaying nerves of steel as the tension increased.
Spain will play Brazil in Sunday's final in Rio de Janeiro.