Less impressive moment in Italian city (7)
I believe the answer is:
palermo
'italian city' is the definition.
(I've seen this before)
'less impressive moment' is the wordplay.
'less impressive' becomes 'paler'.
'moment' becomes 'mo' (slang abbreviation. e.g. 'just a mo').
'paler'+'mo'='PALERMO'
'in' is the link.
(Other definitions for palermo that I've seen before include "Capital city of Sicily" , "Sicilian capital" , "Chief city of Sicily" , "Main city of Sicily" , "Chief port of Sicily" .)