Hungary 1-3 Austria
Hosts Hungary now face an uphill battle to make the Semi-Finals after losing 3-1 to neighbours Austria.
Manchester City's Sinan Bytyqi gave Austria a flying start with a penalty before Markus Blutsch put the game almost beyond Hungary with 20 minutes played. Peter Michorl confirmed Hungary's fate when he found the bottom corner with a neat freekick just after half-time.
Hungary did get a consolation Szabolcs Varga but it proved to be futile as they failed to conjure up another meaningful chance.
Hungary now face Portugal, who enjoyed a perfect start with a 3-0 win over Israel. While Austria face Israel.
Ukraine 1-1 Serbia
Holders Serbia came from behind to ensure they would avoid defeat in their opening game.
Mykyta Burda gave the 2009 Champions the lead in the opening minute when he profited on a Viktor Kovalenko corner.
However, their joy was short lived when Nemanja Maksimović made the most of Andrija Živković's cross with a far-post volley.
Serbia were unlucky not to have taken the three points in the second half but Luka Jović and Danilo Pantić were both denied by the woodwork in the final 20 minutes of the game.
Serbia now face Germany, who enjoyed a comfortable 3-0 win over Bulgaria. While Ukraine face Bulgaria.