In a medium sauce pan heat 2 tbsp oil, add chopped onion and saute until translucent about 7 minutes. Add minced garlic and cook for another 1 minute. Add chopped carrot and celery stalk, season with salt and pepper. Dilute tomato paste in wine and pour into the pan. Cook for for few minutes and add diced tomatoes. Add sugar and cook on low heat for 30 - 40 minutes, stir occasionally (add a little bit of water if sauce become to thick to early).

In a medium pan heat 1 tbsp oil, add chopped red onion and saute until translucent. Let it cool.

In a large bowl, mix minced meat, half of parsley leaves, half of basil leaves, cooked onions, egg and bread crumbs, season with salt and pepper and form into 15 small balls.

Preheat oven to 400°F (200 °C).

In a skillet, heat remaining oil, add meatballs, and fry them on every side, for about 7 minutes.

In a baking pan, pour tomato sauce, add meatballs and press them into tomato sauce, sprinkle with grated cheese and bake in preheated oven for 20 minutes.

Sprinkle with remaining parsley and basil leaves and serve warm with pasta or potatoes.