For those interested in the specifics, it was Fifa regulation 11, sub-clause 11 that started the trouble. Passed five years ago, seemingly under the cover of darkness to judge from the surprise when it was implemented by Peter Fröjdfeldt, the Swedish referee, last night, it established that a player no longer has to be on the field to be active, provided he has left the pitch without the permission of the referee. And Christian Panucci, Italy’s right back, had most certainly done that after he collided with his own goalkeeper, Gianluigi Buffon, when trying to clear the ball. He stumbled two paces and collapsed in a heap, lying on his back, with both hands on his head, some three yards beyond the byline.

And it was from that prone position, not even watching the action, that he was somehow judged to have played Ruud van Nistelrooy onside and allowed him to score one of the most controversial goals in tournament history. Not because it was indisputably illegal, for it was quickly established that, despite Italy’s ire, Holland’s first goal was within the new rules as so interpreted by Fröjdfeldt, but because it was so daft, so wrong, so clearly a mistake, that it should have been scrapped on commonsense grounds. Yet when was clarity of thought last on nodding acquaintance with the offside laws? Not for some time. Maybe this will spark a re-evaluation.

Maybe Fröjdfeldt felt that Panucci was play-acting. Perhaps he believed that it was a calculated ploy to trap Van Nistelrooy offside. If so, he was incorrect. Dumb luck, not judgment, put Panucci out of play. The pity is that the questionable nature of Holland’s opener became the biggest talking point, when so much of what followed represented the high-water mark of the tournament so far.

Only two teams have held the world and European titles simultaneously and, of those, only France in 2000 stayed hungry enough to land the smaller, European, crown having already been acclaimed as world champions. It was always going to be a tall order for Italy to maintain the motivation that drove their victorious World Cup campaign in 2006, in the wake of domestic scandal and ignominy. What few had factored in was that, in Holland, they were up against a group of players who had their own reasons to raise the bar, having been written off in many quarters as inferior when compared with previous generations of Dutch masters.

The view that this was a team of nearly men had gone by the wayside long before half-time. Holland played the most high-powered and technically sublime 45 minutes of football yet seen at Euro 2008: quick, imaginative and held together by precision passes and a counter-attacking flair that left the Italians looking into the abyss unless they can beat Romania.

For Holland, it was their first victory over Italy since the 1978 World Cup; for the Italians, their heaviest tournament defeat since Brazil put four past them in the 1970 World Cup final.

If the first goal was one for the debating forum, the second was a minor masterpiece. Holland struck on the break with such energy and rapidity that the move began with a clearance off their line, and was created in the opposing half by the same heroic defender, Giovanni van Bronckhorst, who, having saved his team at one end, sprinted the length of the field to deliver the cross that was headed down by the exceptional Dirk Kuyt and converted by Wesley Sneijder, celebrating his 24th birthday with a joyous performance.

The Italians fought hard, but could find no way around Edwin van der Sar. By contrast, Gianluigi Buffon, the Italy goalkeeper and, like Van der Sar, also a captain on the night, appeared shell-shocked. He was exposed by a defence that clearly missed Fabio Cannavaro, injured only days before the tournament began. It is rare to see an Italian defence carved open so consistently.

The final goal, scored in the 79th minute, began with a save by Van der Sar from a free kick by Andrea Pirlo, with Van Bronckhorst being quickest up the field as before. He set up Kuyt, who was denied by Buffon, but recovered swiftly, chipping the ball back into the box, where it was headed in by Van Bronckhorst. At that moment the contest was over and it remains to be seen whether Italy’s campaign will recover. A group of death, indeed.

Yet what we can never know is how the game would have panned out had Holland not scored in the 26th minute and, in that way, it is possible to have some sympathy for Italy’s complaints. When the goal was shown on screens around the ground in Berne a chorus of disapproval greeted the video evidence. No wonder. After Buffon had punched a free kick clear, Sneijder’s returning shot was turned in by Van Nistelrooy with a line of Italy defenders four strides up the field. Only in the background could the stricken figure of Panucci be seen. If he was still active the goal was perfectly legitimate, but to be active Fröjdfeldt would have to believe that he had been smashed to the turf by Buffon intentionally, as part of a cunning ploy. The replay tells a different tale.

Now contrast this with the goal scored by the Czech Republic against Switzerland on Saturday, when a player standing yards offside was deemed inactive, despite distracting the last defender, who missed a run from deep made by an opponent, who scored. Madness.

Italy will claim that the first goal did the damage, although by the end, greater pain had been inflicted by opponents that have instantly set the standard as the team to beat at Euro 2008. Total football, however, has been replaced by something just as memorable: total chaos as far as the offside rules are concerned. Blame Fifa for that.

Holland (4-2-3-1): E van der Sar — K Boulahrouz (sub: J Heitinga, 77min), A Ooijer, J Mathijsen, G van Bronckhorst — N de Jong, O Engelaar — D Kuyt (sub: I Afellay, 84), R van der Vaart, W Sneijder — R van Nistelrooy (sub: R van Persie, 70). Substitutes not used: H Timmer, M Stekelenburg, D de Zeeuw, A Robben, M Melchiot, W Bouma, T de Cler, K-J Huntelaar, J Vennegoor of Hesselink. Booked: De Jong.

Italy (4-3-3): G Buffon — C Panucci, A Barzagli, M Materazzi (sub: F Grosso, 55), G Zambrotta — G Gattuso, A Pirlo, M Ambrosini — M Camoranesi (sub: A Cassano, 75), L Toni, A Di Natale (sub: A Del Piero, 64). Substitutes not used: M Amelia, M De Sanctis, G Chiellini, A Gamberini, D De Rossi, M Borriello, F Quagliarella, S Perrotta, A Aquilani. Booked: Toni, Zambrotta, Gattuso.

Referee: P Fröjdfeldt (Sweden).