Spain lost influential midfielder Rodri to injury at half-time, but shrugged that off to take the lead within two minutes of the restart through Nico Williams, who was set up by his fellow star winger, Lamine Yamal.
England came from behind as they have done so often at this Euros, as substitute Cole Palmer drove in the equaliser on 73 minutes, moments after entering the fray.
But their resurgence in the game was cut short as Oyarzabal, the Real Sociedad forward, turned in a cross in the 86th minute to hand Spain a record fourth European Championship crown, and a third in the last five editions.
They previously won in 1964, 2008 and 2012, the last two titles coming either side of their triumph at the 2010 World Cup during the golden era of Xavi Hernandez, Xabi Alonso and Andres Iniesta.
Whether this generation, led by the brilliant Yamal who was playing here a day after his 17th birthday, manage to repeat the achievements of that magnificent side remains to be seen, but theirs was a fitting victory.
Spain have been comfortably the best team over the last month in Germany and were not intimidated by the atmosphere at the Olympiastadion, where the majority of the crowd were given over to England’s cause.
England had hoped to finally claim a first men’s international title since their fabled victory at the 1966 World Cup, but fell just short in their first ever final on foreign soil.
After the agony of their defeat on penalties to Italy three years ago, they are the first side ever to lose back-to-back Euros finals.
Captain Harry Kane, meanwhile, is left at the age of 30 still looking for the first trophy of a career so rich in goals, this defeat coming after a season in which he also won nothing with Bayern Munich.
– Spain overcome Rodri injury –
It was always likely that Spain would control this game, and England spent most of the first half chasing the ball.
Spain controlled the game from the off, but it took until stoppage time at the end of the first half for either team to manage a shot on target, with Phil Foden’s effort from a Declan Rice free-kick delivery being easily saved by goalkeeper Unai Simon.
But it was just before that in which Rodri hurt himself, sliding into teammate Aymeric Laporte on the follow-through as he blocked a Kane shot.
Spain’s outstanding holding midfielder was unable to continue, and made way for Martin Zubimendi at the restart.
It felt like the loss of such a presence in the middle of the park could completely throw Spain off course, and yet they wasted no time in opening the scoring.
England were braced for the danger to come from Spain’s two wingers, and it was they who combined for the goal, as Yamal collected a Dani Carvajal pass and darted inside.
He released a pass for Williams, who scored with a controlled, low first-time shot across Jordan Pickford and into the far corner.
England would now need to come from behind, but then again that was exactly what they had done in each of their three previous knockout games.
Southgate took off his talisman Kane on the hour mark and sent on Ollie Watkins, a repeat of the substitution that won the semi-final against the Netherlands.
Spain had chances to increase their lead and their fans began to greet every successful pass with an ‘ole’, as Southgate tried to turn the tide by sending on Palmer for Kobbie Mainoo.
Within three minutes England were level as Bukayo Saka’s ball in from the right was laid off by Jude Bellingham for Palmer, who found the net from range with a low first-time effort into the corner.
However, Spain grabbed the winner with four minutes to go thanks to their own super-sub.
Oyarzabal played the ball out to Marc Cucurella on the left before racing into the middle to turn his teammate’s low cross into the net, staying just onside in the process.
Spain then held on, although only after a vital clearance off the line from Dani Olmo to deny Marc Guehi at the death.
AFP
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