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Germany is out of contention for another international trophy after France handed Joachim Loew's struggling team its latest loss on Tuesday.
The balance of power in European soccer is swinging even further away from the 2014 World Cup champion since its poor title defence in Russia.
The result means Germany, eliminated in the World Cup group stage in Russia, cannot advance to the Final Four tournament in June for the Nations League top-tier group winners.
Germany wasted its first-half dominance at Stade de France, having led via a 14th-minute penalty from Toni Kroos.
Antoine Griezmann struck twice in the second half – a precisely guided header in the 62nd and a penalty in the 80th – to take France's unbeaten streak to 15 games and extend its lead in Group 1 of League A.
Germany also risks an embarrassing relegation to the second-tier League B when it finishes the group program against the Netherlands on 19 November.
Elsewhere in the Nations League, Ukraine won promotion to League A by beating the Czech Republic 1-0 in Group 1 of the second tier.
Ukraine, coached by former star forward Andriy Shevchenko, also improved its chances of qualifying for the 2020 European Championship. Nations League group winners are assured of a place in the playoffs for the Euros, if they don't qualify directly.
UEFA created the Nations League to replace most international friendly games, though Belgium's schedule was free Tuesday to host the neighbouring Netherlands in a 1-1 draw in Brussels.
France was overrun for a period in the first half after Germany converted a penalty that followed midfielder Paul Pogba being dispossessed too easily in his own half. German winger Leroy Sane was sent clear and his low cross hit the arm of defender Presnel Kimpembe.
France drew level when left-back Lucas Hernandez crossed for his Atletico Madrid teammate Griezmann to guide a rising header beyond goalkeeper Manuel Neuer's dive.
Griezmann later wrong-footed Neuer from the penalty spot after a foul was called on defender Mats Hummels against midfielder Blaise Matuidi.
Television replays showed Matuidi appeared to stand on Hummels' ankle sliding into the challenge, but UEFA is not using video review in its competitions this season.
A third straight win for Ukraine ensured it became the first League B team promoted into the top tier for the next edition of the Nations League.
Ruslan Malinovskyi's long-distance shot in the first half was enough to beat the Czechs in Kharkiv.
Wales now leads Group 4 in League B after beating Ireland 1-0 in Dublin through Harry Wilson's second-half free kick. Wales hosts Denmark on Nov. 16.
In League C, Norway now leads Bulgaria in the four-team Group 4 after beating the Bulgarians 1-0 in Oslo. Slovenia staved off relegation by drawing 1-1 with Cyprus in a game featuring three red cards.
Georgia ensured promotion from League De with its fourth straight win, 3-0 at Latvia, ensuring it will win Group 1.
The No. 93-ranked Georgians will also have a chance to advance to Euro 2020. One of the fourth-tier League D teams is sure to reach the Euro through the playoff route for Nations League group winners.
Gibraltar earned just its second ever competitive victory, beating visiting Liechtenstein 2-1. Gibraltar also closed to within three points of Group 4 leader Macedonia which lost its perfect record in a 4-0 loss at Armenia.
The final rounds of Nations League games are played Nov. 15-20. The Euro 2020 qualifying draw, seeded by Nations League standings, will be held Dec. 2 in Dublin.
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