SPAIN 2 (Williams 47, Oyarzabal 87)
ENGLAND 1 (Palmer 73)
SOMETHING HAD to give in this battle of the comeback kings, and Spain are European Champions for a record fourth time because they found a way to win with another late goal.
Mikel Oyarzabal, a late substitute, slid in to give Spain the victory they deserved, just as it was looking England were about to put on another late, late show of their own.
After man-of-the-match Nico Williams had put Spain ahead early in the second-half, Cole Palmer went on and equalised within three minutes.
Suddenly there was hope for Gareth Southgate, who had withdrawn Harry Kane on the hour mark after another laboured display.
But when Marc Cucurella drilled in a low cross from the left with three minutes remaining, Oyarzabal got to the ball ahead of Marc Guehi and it was second time unlucky for England.
Southgate may well step down now, but he led his country to two successive finals in this competition.
The wait for a trophy, though, continues and England's supporters cannot complain too much.
They came up against the best side in the tournament, with the understated management of Luis de la Fuentes chalking up a record seven wins from seven in these finals. You cannot beat that.
From the start, they were the better side, and all eyes were understandably on young wingers Williams and Lamine Yamal, who turned 17 on Saturday.
Kyle Walker had his work cut out trying to keep up with Williams. The Athletic Bilbao winger has pace, balance and tricky feet, able to change direction at speed, and Walker could have been forgiven for feeling dizzy by the end.
For the opening 15 minutes or so it was one-way traffic with England unable to get the ball or get out of their own half.
It was only when Walker began to support Bukayo Saka on the right that Southgate's men looked dangerous.
One cross from Walker was cleared in front of goal, and then Saka set up Declan Rice for a shot that was blocked. Shaw broke down the left, cut into the penalty area but could not pick out a team-mate with his final ball.
The game became more even as the first-half wore on, with Dani Olmo hitting a shot straight at Kane, who then shot weakly when set up by Jude Bellingham.
It was no great surprise to see the number nine go up on the fourth official's board when Ollie Watkins was ready to go on around the hour mark.
Kane has not looked fully fit all tournament, and though he finished as the competition's joint top scorer with three goals, he looked well below par again.
Just as a poor first-half was entering stoppage time, Phil Foden had a half chance when the ball dropped to him at the far post following a free-kick.
But the Manchester City man was stretching to make contact, and his tame effort was comfortably collected by Unai Simon at his near post.
It had not been high-octane stuff, though. Spain started to lose their fluency midway through the first-half and began to mis-hit passes and run into blind alleys.
England were unable to show the sort of front-foot football that helped them overcome the Netherlands, simply because the Spanish would not let them.
It became niggly, with Olmo going into the referee's notebook for catching Rice at waist level.
Rodri had needed treatment before the break and did not return for the second half, but instead of an adverse effect on the team, they responded in the best possible way by scoring within 70 seconds of the restart.
Carvajal worked the ball down the right to Yamal, who cut inside Shaw, danced across the edge of the penalty area, drawing defenders in his wake, and laid a perfect pass into the path of Williams, who was charging in from the left.
The winger hit the ball first-time with his left foot, guiding it past Jordan Pickford to send Spanish supporters wild with celebration.
Spain sensed blood and went for more. Williams put Olmo in on goal but he shot wide of the far post, Alvaro Morata went past Marc Guehi but could not finish, and then set up Yamal for a low shot that Pickford did well to tip away.
Ten minutes after Watkins went on as substitute, Palmer replaced Kobbie Mainoo, and within three minutes England were level.
It was a swift counter-attack, with Bellingham at the heart. The Real Madrid man won the ball to put Saka away on the right, and when the Arsenal winger cut the ball back to Bellingham, he laid it unselfishly into the path of Palmer, who curled his shot with unerring accuracy into the far corner of goal.
Suddenly it was game on. Saka almost set up Watkins, then Pickford had to produce a great save to keep out Yamal's shot.
But he had little chance when Oyarzabal slid in to convert Marc Cucurella's low cross in the 87th minute, and that was that.
Spanish celebrations could begin in earnest minutes later, while England are left to reflect on another one that got away.
Simon 7; Carvajal 7, Le Normand 6 (Nacho 83), Laporte 7, Cucurella 7; Ruiz 7, Rodri 6 (Zubemendi 46); Yamal 8 (Merino 89), Olmo 8, Williams 9; Morata 7 (Oyarzabal 67).
Pickford 7; Walker 6, Stones 7, Guehi 6; Saka 7, Mainoo 7 (Palmer 70), Rice 7, Shaw 6; Foden 6 (Toney 88), Bellingham 7; Kane 5 (Watkins 61).
Francois Letexier (France) 9.