Preheat oven to 180C.
Heat generous light of olive oil in a Dutch oven
Sauté onion over medium heat for 2-3 minutes until translucent, then add garlic, dried herbs and stir for another 1-2 minutes.
Add meatballs and cook until lightly browned.
Add canned tomatoes, water, tomato paste and mix well. Stir in vegetable stock, balsamic vinegar and sugar.
Bring to the boil then reduce to a simmer on low heat for 15 minutes. Taste and add salt or pepper if desired.
Transfer to the oven with the lid off and bake for 20 minutes.
Serve in buttered bread rolls or over cooked pasta with fresh basil leaves, parmesan, salt and pepper.