Belgium's high tempo and fast counter attacks gave England constant trouble and they led at half time from a Thomas Briels strike.
Second half goals from Jerome Truyens and Florent van Aubel sealed England's fate.
England's opponents in Sunday's third place match are Netherlands, who lost 5-3 to Germany.
England's women meet Germany in tomorrow's (Sat) final knowing that a higher medal than the four bronze, won in the last Euro events, is already assured.Both teams reached this stage after penalty shoot-outs with England prevailing in sudden death against Olympic champions Netherlands while Germany equalised in the last minute against Belgium.
England will be without Sally Walton, whose injury in the semi-final has been found to be torn ankle ligaments.
