Italy won 4-3 with 5 goals scored in the extra time. It's considered one of the best games ever played and probably what sparked the long-lasting football rivalry. It wasn't even a final, it was a semi-final - legend has it that the Germans tired the Italians out so much that when they arrived at the actual WC final against Brazil they were still exhausted, and that's why they lost 4-1 to them.
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The 1970 game that we won against them is however sort of a huge deal for football nerds so that's probably what they're thinking of:
http://en.wikipedia.org/wiki/Italy_4%E2%80%933_West_Germany_%281970_FIFA_World_Cup%29
Italy won 4-3 with 5 goals scored in the extra time. It's considered one of the best games ever played and probably what sparked the long-lasting football rivalry. It wasn't even a final, it was a semi-final - legend has it that the Germans tired the Italians out so much that when they arrived at the actual WC final against Brazil they were still exhausted, and that's why they lost 4-1 to them.