AFTER topping France in their last qualifying group, Brian Flynn's side came within an ace of doing the same thing to Italy in the latest tournament.
Alas it was not to be as an early goal from Mustacchio gave the Italians the advantage in Pescara this afternoon and meant that Wales have to score at least one goal to have any chance of upstaging their illustrious hosts.
And not only did they slip to secnd in the group, but also missed on the one of the best four runners-up spots that would have meant advancement - by goal-difference to Iceland!
The Italian break through came on 13 minutes, when a long ball down their right dropped over Neil Taylor's head allowing winger Mustacchio to race away before firing a low shot under Chris Maxwell and inside his far post.
Wales have had two efforts at goal in the first half, the first saw captain Shaun Macdonald firing in a header from a corner and then centre half Andy King unleashed a shot that was narrowly off target from distance.
Former Wrexham defender Neal Eardley did well at the back for Wales, tidying up on several occasions when the speedy home strikers had threatened to breakaway.
While we were behind on attempts at goal, we had enjoyed 54% of the possession in the opening 45 minutes.
Ht 1-0 Italy
Not much action around either goal in the opening 10 minutes of the second half, but there was a booking for Mark Bradley, who was promptly replaced by Southampton's Ryan Doble.
Ashley Richards was hacked down in side the Italy half, which led to a spat between a number of players.
Leicester's Andy King had claims for a penalty, when he was bundled over in the box, but the Dutch referee was not impressed.
Maxi was called into action to deny the Italian #10's angled drive, after he had skipped into the Welsh box.
Wales were still in front in terms of possession, 52-48%, although Italy were looking the more dangerous when they went forward.
Another two saves by Maxi, plucking out a long range effort from their #10, then catching a high looping ball into the box.
Marc Williams given 10 minutes to try and save the day, after being sent on for Joe Allen.
Late on a Wales free kick was played into the home box at the angle, but Church's flick header carried on passed the back post.
It was a brave effort from the Welsh players, who have deserved more after what has been a great qualifying campaign.
Italy U21: Mannone, Ariaudo, Ogbonna Obienza, Ranocchia, Bolzoni, Fabbrini, Marrone (Soriano 56), Mustacchio (D'Ambrosio 74), Schelotto, Marilungo, Okaka (Destro 78).
Subs: Perin, Angella, Pasquato, Borini.
Wales U21: Chris Maxwell, Aaron Morris, Neil Taylor, Neal Eardley, Andy King, Adam Matthews (Ashley Richards 34), Joe Allen (Marc Williams 78), Mark Bradley (Ryan Doble 56), Hal Robson-Kanu, Shaun MacDonald, Simon Church.
Subs: David Cornell, David Stephens, Joe Partington, Jake Taylor.
Referee: Bas Nijhuis (Holland)
Attendance: 6,891
Booked -
Italy: Ariaudo, Marilungo
Wales: Bradley, MacDonald