England Under-21s manager Stuart Pearce has said that his side were outclassed in their 1-0 loss to Italy.

Lorenzo Insigne scored an 80th-minute free kick to give Italy all three points in the opening group game of the U21 Euro 2013 Championships, after Craig Dawson's header was ruled out by the officials.

The England manager admitted that Italy deserved to win.

"We didn't play well tonight. It was there for everyone to see, the better side won if I am being honest," Pearce told Sky Sports News.

"They caused us problems. Their front line with their movement caused us problems and we got caught in between how to play against them and we didn't get any performances from our bigger players from within the game as well.

"We can't grumble about the result we were well beaten and we just have to prepare for Saturday's game and we have to finish on top of three teams now in regard to ourselves, Norway and Israel."

England play Norway on Saturday before facing hosts Israel in the final group game next Tuesday.