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Crewe's Dean Ashton played the ball forward and Carter cleverly waited for Italian 'keeper Vitangelo Spadavecchia to make his move before planting the ball past him with the outside of his left foot.
The Blues' midfielder's goal, his second in successive games, gave England a 2-1 half time lead - Newcastle United's young striker Michael Chopra scoring first on 15 minutes, only for Italy to equalise on 26 minutes.
Italy brought the scores level again on 56 minutes then England went ahead for the third time after 62 minutes - only for the Italians to incredibly level again within 60 seconds.
Messina striker Calaio then scored after 66 minutes to put the visitors ahead for the first time and England's misery was completed after 75 minutes when Marco Donadel scored from 18 yards to make the final score 5-3.
