Italy seem to be another well balanced side, with the huge advantage of being able to play two strikers. They have done very well to reinvent themselves after the debacle of South Africa.
A few months ago I would have said that Germany were the form team and favourites going into the tournament. The Spanish players looked drained and the inability of either of their sides to get to the final of the Champions League seemd to support that. But the Germans, for all their energy, failed to create clear chances -- the guy they wanted to score just didn't get through on goal enough. Spain, for all their lack of a centre forward, and Italy, seem to manage that more easily in the games that really count.