Italy is but one of the cornerstones of the European defense technological and industrial base (or otherwise known as EDTIB). Italy is the country of origin of many globally renowned defense companies such as Leonardo Spa, MBDA and Fincantieri. With expertise spanning crucial sectors like rotary-wing vehicles and electronics, these companies play a vital role on the world stage. Despite their global reach, there’s a growing realization that Italian companies face challenges when it comes to translating industrial and technical capabilities into project leadership, which is jeopardizing the efficacy and reliability of Italy’s security industry especially within European collaborative programs. A case in point is the European Defence Fund (EDF), where Italian aerospace and defense companies have performed modestly compared to their industrial weight. While Italy has actively participated in previous European defense research and development initiatives, the early rounds of EDF have not seen the nation exercise the expected degree of industrial and technological leadership. This raises questions about the need for policy actions to enhance Italy’s standing in EDF, especially when compared to its more prominent role in the Permanent Structured Cooperation (PESCO). In PESCO, Italy has demonstrated leadership in line with its economic influence. The country ranks second, only behind France, in terms of coordinated projects, reflecting its active participation and commitment to PESCO initiatives. Italy’s efforts in securing and coordinating new PESCO projects have been consistent and proactive. As Italy stands at a crossroads in the European defense landscape, the challenge lies in leveraging its vast industrial capabilities to assert stronger leadership roles in collaborative programs like EDF. The country’s proactive stance in PESCO proves its capabilities and potential to play a far greater role than it currently does overall. Time will tell whether Italy will be able to address these challenges head on.