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My predictions are,
Group A - Portugal and Switzerland
Group B - Germany and Austria
Group C - Netherlands and Italy
Group D - Spain and Sweden
Final - Germany and Netherlands
Winner - Germany
One can argue on my preference of Switzerland and Austria making into the 2nd round, but they are the host countries and have home-crowd advantages. Even Japan and Korea made it to the 2nd round in World Cup 2002.
Only thing that sucks about the Euro 2008 is its schedule, all of the games are played during the mid-day US (Eastern) time. But I'm sure that it is gonna be a great competition.