Italy will next face Group D winners Spain on Sunday in Vienna, although their attempt to improve on an occasionally unconvincing performance will be hampered by the absence of key midfielders Pirlo and Gennaro Gattuso. The pair are suspended after getting their second yellow cards of the tournament.
It was Italy's first win over France without the help of a penalty shoot-out in 30 years, the last occasion being a 2-1 win at the 1978 World Cup.
Italy beat France in a shoot-out in the 2006 World Cup final and the teams also met twice in qualifying for Euro 2008. The French won 3-1 in Paris and the teams drew 0-0 in Milan.
Help from the Dutch
But the Italians still needed help from the Netherlands to be sure of their place in the next round, and got it when the Dutch beat Romania 2-0 in the other Group C match. The Netherlands won the group with a maximum nine points and Italy finished second with four. Romania exited with two points and France finished last with just one.
Italy coach Roberto Donadoni, who used to play with Netherlands manager Marco van Basten at AC Milan, said he had always been confident the Dutch would play at their best despite having already won the group.
"I didn't have any doubts. I know Van Basten," Donadoni said. "I know what he's made of. When they asked me to call him, it seemed useless, and disrespectful to him."
France were at a disadvantage from the seventh minute when winger Franck Ribery collapsed before being carried off with an injury to his left leg.
That robbed France of perhaps their greatest attacking threat and Italy got the chance to take control when Toni stretched acrobatically to control a long pass from over his head with the tip of his foot, luring Abidal into pulling him down from behind.
Abidal was sent from the field and Pirlo dispatched the kick emphatically.
"In one match it's impossible to have so many catastrophes on a pitch," France coach Raymond Domenech said. "You'd think it's impossible."
Italy knew that they would go through so long as they and the Netherlands avoided defeat, so news of the Dutch's 54th-minute opener against Romania sent fans wild when it reached the Letzigrund Stadium.
And their celebrations became even more fevered when Italy got another bit of good fortune in the second half. De Rossi's free kick deflected past goalkeeper Gregory Coupet and into the net off Thierry Henry, who stuck out his boot from his position at the end of France's defensive wall.
Wet field
A light rain shortly before kick-off had ceased and clouds came in to obscure a large rainbow hanging over the field. But the wet field maybe helped Italy's passing game, and the Italians looked far stronger than they had in their previous two matches - a 3-0 loss to the Netherlands and a 1-1 draw with Romania.
"This was a great response from the entire team," Donadoni said. "Our enthusiasm and spirit pushed us forward, even when it all seemed lost at one point."