Paraguay awoke on Tuesday to an impromptu national holiday, decreed by President Santiago Peña in the immediate aftermath of a penalty shootout victory over Germany that sent the South American side into the last 16 of the 2026 World Cup. The decree, published on social media alongside an image of Peña signing it while wearing the national team jersey, declared that the government “cannot remain indifferent to this tremendous achievement” and that it was “necessary to facilitate the gathering of all Paraguayans in celebration of this historic day.” The move echoed a similar decision by Ecuador a week earlier, after that nation also beat Germany in the group stage.

The match in Foxborough, Massachusetts, had finished 1-1 after extra time. Julio Enciso gave Paraguay the lead three minutes before half-time, finishing a swift counter-attack. Kai Havertz levelled for Germany nine minutes after the restart, heading in a cross from Florian Wirtz. Germany dominated possession and territory thereafter, but a disciplined Paraguayan defensive block, marshalled by a goalkeeper Orlando Gill who would later prove decisive, held firm. In the 102nd minute, Jonathan Tah headed in what appeared to be the winner for Germany, only for the goal to be disallowed after a VAR review judged that a German attacker had impeded Gill’s movement. The decision, which German coach Julian Nagelsmann described as “a scandal” and “not even close to a foul,” preserved the deadlock and forced penalties.

The shootout delivered a historic first: Germany had never lost a World Cup penalty contest, a record stretching back to 1976. Yet three German players—Havertz, Nick Woltemade, and Tah—failed to convert, while Paraguay scored four of their five attempts to seal a 4-3 win. The result eliminated a side that had reached at least the semi-finals in four of the previous five tournaments and, viewed from European press rooms, constituted one of the most striking upsets of the expanded 48-team format. In Asunción, thousands gathered at the Panteón de los Héroes, turning the city centre into a carnival that lasted through the night.

Peña’s holiday declaration, made on the social platform X with the exclamation “Paraguay never gives up! Holiday, damn it!”, framed the victory as an expression of national identity: “the grit, the faith, and the strength of a people who never give up.” The decree’s text, circulated widely, stated that the achievement “went far beyond sport.” South American observers noted that Paraguay became the second country on the continent to grant a public holiday after a surprise result against Germany at this tournament, following Ecuador’s lead. The Paraguayan coach, Gustavo Alfaro, remarked that “the power of football is marvellous” and urged the entire nation to enjoy the moment.

Paraguay, competing in its first World Cup since 2010, will next face the winner of the round-of-32 tie between France and Sweden. A victory there would match the country’s best-ever World Cup performance, a quarter-final appearance in South Africa sixteen years earlier. For Germany, the early exit extends a pattern of tournament disappointment: after group-stage eliminations in 2018 and 2022, this loss in the first knockout round, decided by a shootout and a contentious VAR call, leaves the four-time champions without a knockout victory at a major tournament since 2016.