Italy participated in the 1997 European Championship, with the number of teams participating in the competition increasing from four to eight. In Group B, Italy defeated Norway and drew against Denmark and Germany, still achieving first in the group advancing to the knockout stage. In the semi-final Italy beat Spain 2–1, but in the final, were defeated 2–0 by Germany. In 1998, Italy qualified for the World Championship for the second time. The 1999 edition took place in the United States, with Italy being drawn in Group B along with Brazil, Germany and Mexico. After a 1–1 draw against Germany in the debut match, Italy lost 2–0 to Brazil, and ended the group with a 2–0 victory over Mexico; Italy finishing third in the group and were eliminated.