ASUNCION, June 30, 2026 (BSS/AFP) - The streets of Paraguay erupted Monday as people rejoiced in beating powerhouse Germany in the World Cup and the president declared a national holiday.

Thousands of people gathered in downtown Asuncion to savor the moment -- only the second time Paraguay has won a World Cup game in the knockout stage.

It did so by beating the Germans on penalties in a nail-biting finish.

Cars honking their horns snaked through the capital of the small South American country that does not usually get a lot of attention for anything.

But tonight, their team known as the "Albirroja" -- alluding to the blue and red of their jersey -- were kings.

President Santiago Pena took to X to echo the joyful national mood, writing "Paraguay never gives up."

He then declared a "national holiday" with a playful swear word -- "carajo" in Spanish -- but left off the last letter, as if to keep things clean.

He did not give an immediate date for the holiday.

Germany had never before lost a World Cup shootout, but Paraguay held their nerve -- even after two of their players missed kicks that would have sealed victory.

Their reward is a potential date with tournament favorites France, if France can get past Sweden on Tuesday.

Amado Salomon, a 58-year-old banker driving in the celebratory procession of cars, said Paraguay "did what it does best: defend with all their heart the whole game, and also in overtime."

"This team never stops fighting," he said.

Luis Espinola, a 61-year-old hotel employee, put it this way: "With Paraguay you have to suffer until the last minute."

He added: "It is part of our identity."