Minutes after the referee signalled the end of the Italy versus the Czech Republic match on Thursday, Sliema turned into a mini-Palermo, as thousands took to the streets to celebrate the Italian team's passage into the last 16.

As tailbacks of cars waved the tricolore and blasted their horns, a driver in a vehicle bearing an Italian registration plate looked bewildered wondering why foreigners were ecstatic over his country's victory.

Cars, trucks, scooters and motorcycles, are sounding their horns in a cacophony of soccer madness practically on a daily basis. Malta has gone football crazy and the crunch phase of the tournament has not even started yet!

With Italy and England both making it through to the knockout phase, bar owners and the flag vendors are rubbing their hands in glee.

The open-air big screens have proven to be a big hit with hundreds flocking to places like the Ta' Qali amphitheatre and the Tigullio car park, in St Julians. Though the hooligans made their presence felt in Germany after Tuesday's clash between Sweden and England, supporters of the two countries' teams celebrated together in St Julians.

Of course, England and Italy supporters are looking forward to the day they can celebrate the exit of their "adversary". In fact, some England supporters decided to go out honking their horn chanting "1-1, 1-1", when Italy unexpectedly drew against the US. The Italy supporters will undoubtedly follow suit if England bow out to Ecuador tomorrow.

Sports veteran Fr Hilary Tagliaferro says that though the World Cup hype was in overdrive, he is not greatly impressed with the standard of football. "But, ultimately, the World Cup is a phenomenon and it brings so many people together," he said.

Any tourist arriving in Malta this week will be fooled into believing he has landed in Naples, Manchester, Berlin or even Rio de Janeiro with hundreds of flags perched on rooftops and affixed to cars.

Martin Abela of Zeplin store, in Gzira, said hundreds of flags are being sold every day. "I'm amazed by the number of women buying flags this year. Luckily, Italy and England are through, but there is a lot of support for Brazil and even Australia!"

Antoine Degiorgio, manager of Ryan's Pub, in Spinola, agreed, saying that though the Italy and England matches are luring the biggest crowds, many are now supporting Brazil, Germany and even Australia, especially with so many Maltese having Australian connections.

Mr Degiorgio said the craze for football has grown to such an extent that it is now even reflecting the culture of supporters. "When England play, men will turn up in England jerseys, girls in flip flops, and drink vast amounts of beer. When Italy play, the supporters are better dressed and are more inclined towards consuming wine than the odd pint."

On a good evening, one of the main sport bars is going through some 80 cases of beer.

Pierre Stafrace, general manager of Wands, said the warm evening weather has helped to drive up sales even further as many seek to watch the game outdoors or in an air-conditioned bar.

Mr Stafrace is fully aware though that interest in the tournament will wane if England or Italy are knocked out.

But bar owners' gains seem to be restaurants' losses, most of which have been forced to install television screens not to lose any custom.

In the meantime, employers are trying to be as flexible as possible to appease those workers who want to watch the afternoon matches.

One business owner, who preferred to remain unnamed, said: "I'm allowing my employees to come in early and work their lunch break so they can leave early. In a tournament like this you have to be as flexible as possible or else risk ending up with a long list of 'sick' employees."

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