This Article summarises Italy’s participation in the European Defence Fund and explains the development and goals of the European Defence Fund. The article explains that the European Defence Fund was set up in 2019 with the aim of co-financing joint defence industrial projects and supporting collaborative defence projects across the EU. One of the article's main points is that Italy is lacking in co operation with other EU member states in the European Defence Fund in that Italy is not contributing as much to the fund as it is capable of.  Explaining that the main reason for Italian companies not greatly participating in the European Defence Fund is that there is a willingness and lack of ability to form a consortium in wanting to participate in initiatives on a European level. The article articulates that Italy has not been able to establish itself as a leader with the European Defence Fund but there is no reason that Rome should not be able to establish Italy as a leader with the European Defence Fund. Explaining that with the Permanent Structured Co-operation Italy is only second to France in coordinated projects. Showing that there is an enormous amount of economic capability for Italy that it is failing to take advantage of due to unwillingness or inability to cooperate and create industry-wide consortiums and benefit from the economic potential of the European Defence Fund. Furthermore due to the nature of Permanent Structured Co-operation the intergovernmental role is more apparent therefore creating government policy in this initiative compared to the European Defence Fund.