As the battle intensified, Loew and Schweinsteiger were eager to command the team and quarreled with the referee. Both of them were ordered to stay away from the coach's benches.
During the second half, Germany continued their offensive edge and the three-time tournament winners were rewarded with Ballack's free-kick score 4 minutes after the interval.
To defend their dignity as co-hosts, Austria showed no retreat and they staged waves of counterattacks.
Austria made some good forays forward in the last stages of the game, but lacked the quality to beat the German defense.
Germany thus moved on to face Portugal in the quarterfinals, while Croatia are to take on Group A runner-up Turkey.
"I feel good and I am happy about the victory," said German coach Joachim Loew after the match.
"It was a huge pressure situation, but it is also pleased to be able to games with pressure and emotion," he added.
German defender Philipp Lahm had already cast his eyes on next match against Portugal.
"With regard to Portugal and we will improve in all areas," he said.
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