It was a rollercoaster evening in Dortmund as the Netherlands took the lead early on through Xavi Simons’ thunderous strike.
England responded when Harry Kane put away a contentious penalty and they dominated large periods before Watkins provided the winning moment late on.
“I feel drained and like I have been out there myself. It is a great night,” former England striker Alan Shearer said.
“At times you have to suffer in international football. When it got tough, they had to come up with different answers and they had to find a way again.
“This team has done that without playing spectacular football in four or five of the games. Now they have an incredible chance of winning it.”
Former England defender Gary Neville said this squad does “whatever it takes” to win games and are improving standards.
So is there a feeling that England could upset tournament favourites Spain in the final?
“It feels like it is going to be the time. At every moment they have been doubted and it is a great story up until this point, why shouldn’t it go on?” said former England defender Matthew Upson.
“One of the big things about this group is that they have a bit of cockiness and arrogance about them – but in a good way.
“We have players exceeding huge levels of performances in top teams across the world. We are confident and it shows with the penalties and in moments like this.”