Having waited four years to recapture the UEFA European Women's Under-19 Championship in 2006, Germany retained the title in Iceland but there was no repeat of their comfortable run 12 months previously.
In the semi-finals against France, who they had defeated 3-0 in the previous season's decider, Germany took a 2-0 lead with 24 minutes left but Marie-Laure Delie and Chloé Mazaloubeaud forced extra-time – only for the holders to prevail 4-2 with late Susanne Hartel and Isabel Kerschowski goals.
England awaited in the final having overcome Norway 3-0 with two Ellen White efforts and Elizabeth Edwards's clincher. The first 90 minutes were scoreless but Germany once again thrived in the second period of extra time. Nathalie Bock broke the deadlock and Monique Kerschowski − who along with twin Isabel had also scored in the 2006 final − secured a 2-0 victory.
Iceland, the hosts, were in their first finals and so were Poland, who topped a tough second qualifying round group containing 2005 winners Russia, Wales and Finland. Norway finished behind Denmark in their pool on goal difference but completed the finals lineup as best runners-up. It was Norway who were the first opponents for the hosts, and Iceland found life tough as they lost 5-0. Monique Kerschowski's 19th-minute goal ensured Germany beat Denmark 1-0 in the other Group A opener, and the holders than overcame Norway 2-0.
That secured their semi-final place as group winners one game early, while Denmark beat Iceland 2-1, but although the hosts were now out they gave Germany a good game in their concluding 4-2 defeat. Norway were able to get some revenge for finishing below Denmark in qualifying as, only needing a draw to pip their neighbours to the last four, they won 2-1 with an added-time Isabell Herlovsen goal.
Group B was clearly going to be close from the opening matchday; England needed a last-gasp Fern Whelan equaliser to hold Poland 1-1 while France pipped Spain 1-0 with a late Amandine Henry goal. Spain bounced back to defeat Poland 2-0, while England went top by beating France 3-1. Danielle Buet's 20th-minute goal against Spain three days later ensured England held first place with a 1-0 victory and France joined them in the semi-finals after defeating Poland 4-0.
However, both France and England fell to Germany in the knockout phase, but along with the champions and Norway those teams booked their places in the 2008 FIFA U-20 Women's World Cup in Chile. Meanwhile, White, Delie and Iceland's Fanndis Fridriksdóttir shared the top scorers' prize with three goals each. Norway and France shared the Fair Play prize.