Lightly fry the shallots, garlic and chilli for 2-3 minutes until soft. Deglaze the pan with a splash of white wine. Add the tomatoes along with the basil, oregano and finally the olives. Simmer to reduce (this should take 5-10 mins).
While the tomato sauce is cooking, make up the meatballs: Into the mince add the parsley, parmesan, garlic and add soaked breadcrumbs, mix well. Season with a little salt and pepper.
Shape into walnut sized balls and lightly coat the meatballs in the flour and fry in hot olive oil until golden. Add the meatballs to the tomato sauce and bake in the oven for 10 minutes.