Croatia boss dismantles the Germans to give Capello a timely World Cup reminder

Slaven Bilic's European Championship dark horses shook Germany rigid as the first real shock of the tournament last night reverberated beyond Klagenfurt and all the way back to England.

The grand performance that Croatia's up and- coming young coach coaxed from his side will not have made comfortable viewing for Fabio Capello, who must soon pit his wits against Bilic for a World Cup place.

Croatia's Ivica Olic celebrates after scoring his side's second goal against Germany

Joachim Loew's Germany kicked off as tournament favourites but ended the game bickering among themselves and facing the prospect of a testing quarter-final against Big Phil Scolari's in-form Portugal next week.

Not even Lukas Podolski's lethal left foot could rescue them from the trouble following goals from Darijo Srna and Ivica Olic and their night disintegrated when substitute Bastian Schweinsteiger was sent off in time added on.

Loew accused his team of being weak but a thrilled Bilic said: 'Let me congratulate everyone who participated, and that means the 22 players plus six substitutes, and the crowd for a great match. I would like to extend special congratulations to my players, not only for fighting but also for playing excellently. There's no other way to beat the Germans than by playing well.'

Croatia's Ivica Olic, right, scores his team's second goal past Germany's Jens Lehmann

Croatia's fans, some of whom witnessed the World Cup win over Germany a decade ago, sang 'Auf Wiedersehen'. They would have been better serenading their coach's latest triumph. Bilic had changed the shape from an opening win over Austria, drafting in extra midfielder Ivan Rakitic to give his side more chance of retaining possession.

That left Olic, who earns a living for Hamburg, as the lone striker. But it gave the Croats a certain confidence, and an ability to prevent Michael Ballack and Co from finding the time and space they had enjoyed in their first, less demanding game against Poland.

Christophe Metzelder had to make the tackle of the opening quarter, just inside his own box, to take the ball off Olic's toes.

How Germany wished Marcell Jansen had been as focused minutes later. The Bayern left-back had been shown up as a potential weak link by the Poles, and so it proved when Srna gave Croatia the lead after 23 minutes.

Portsmouth's Niko Kranjcar swept over a testing cross from the left and Jansen, fatally uncertain at the far post, allowed Srna to edge in front of him and stab the ball beyond Jens Lehmann.

Germany's goalkeeper Jens Lehmann, left, makes a save from Kranjcar

Srna was booked a few minutes later for coldly upending Podolski but, unsurprisingly, hardly looked concerned. All the worries were with Germany. Stipe Pletikosa refused to let Ballack fire his team back on terms with a magnificent parry from the Chelsea man's free-kick.

Kranjcar might have added to the Germans' problems but Jansen, this time, did just enough with a desperate lunging challenge to put him off - not that it prevented the defender being hooked at half-time.

Metzelder cursed as he planted a free header over from a Torsten Frings corner, then Lehmann stopped Germany falling two behind with a superb reflex save when Kranjcar blasted it point-blank just before the break.

The goalkeeper, who has just left Arsenal, was out of luck when Croatia snatched the crucial second goal after 61 minutes.

Rakitic's deflected shot wrongfooted Lehmann, came back off a post and was duly clipped in by Olic. Lehmann grimaced in the knowledge that, having got a hand to it, he should have done better.

Germany's hopes of escaping defeat were raised in the 79th minute when Podolski smashed in his third goal of the tournament after the tiring Croatia defence failed to clear Ballack's knockdown from Philipp Lahm's centre.

Yet, for all Germany's last-gasp efforts, the weary Croats held on, and the frustration that had simmered throughout boiled over with Loew's side on the brink of defeat. Schweinsteiger simply had to go after angrily shoving Jerko Leko, irrespective of the Croat' s dramatic reaction.