Instead of hanging to the point that would have secured their place in the tournament co-hosted by Austria and Switzerland, they conceded a third goal 13 minutes from time, allowing Russia to steal into second place in Group E and qualify with Croatia.
It was the first time since 1984 that England missed out on the European Championship finals and the first time since the 1994 World Cup that they failed to qualify for a major tournament.
Former England captain David Beckham, a second-half substitute said, “This is a big setback, not just for the players but the nation… We have to show the English way which is to fight back.”
The home crowd was stunned after eight minutes when Scott Carson, controversially chosen in goal after making his debut in a friendly only last week, allowed a speculative shot by Niko Kranjcar to skid off him and into the net, and it looked all over when Ivica Olic doubled the lead six minutes later.
England pulled level with a 56th-minute Frank Lampard penalty followd by a great goal by striker Peter Crouch, who expertly controlled a cross from half-time substitute Beckham before volleying the equalizer.
Croatia, though, continued to look dangerous and won it in the 77th-minute when substitute Mladen Petric lashed in a shot from the edge of the box.
The Croatians will be among the second seeds when the draw for the finals is made in Lucerne, Switzerland on December 2.
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