England's dream of a first European Under-21 Championship title in 25 years was cruelly dashed as Stuart Pearce's weakened side succumbed 4-0 to a buoyant Germany in the final at Malmo's New Stadium.

There was no fairytale finish or winner's medals for City's centre-back team-mates Micah Richards and Nedum Onuoha, who was replaced at half time by former Blues manager Pearce with England already trailing 1-0.

That came via a superb finish from Gonzalo Castro, who had scored for Germany in their 1-1 group draw a week earlier, but the killer second was an embarrassment for Scott Loach, deputising for suspended City keeper Joe Hart.

England's hopes took an early knock in the 23rd minute when midfielder Mesut Ozil delivered a brilliant pass that took full advantage of a perceptive run by danger man Castro, who clipped the ball past the advancing Loach.

Pearce's men were struggling for a real cutting edge from the very start, with Theo Walcott looking too isolated as England's lone striker because of suspensions to orthodox front men Gaby Agbonlahor and Fraizer Campbell.

The Under-21s, having overcome a penalty shoot-out jinx to get past semi-final opponents Sweden on Friday, now faced another historic hurdle: they had not overturned a first-half deficit since beating France ten years earlier.

Nor had they lost at Under-21 level to a re-unified Germany following the fall of the Berlin Wall in 1989. But their hopes crumbled further after 48 minutes when Watford's Loach totally misjudged a 35-yard free kick from Ozil.

Man-of-the-match Ozil set up Sandro Wagner to fire Germany's third goal through Loach's legs after 78 minutes before confident Wagner curled in a fourth from outside the box after 84 minutes to rub salt into the wound.

It left no room for doubt as to the better side on the night, although Richards and his team-mates never gave up the fight as England coach Pearce could only rue three vital suspensions that proved too high a handicap.