In large bowl combine beef, onion, eggs and bread crumbs. Season with oregano, basil, salt and pepper. Mix well. Form medium sized meatballs and set aside. In a heavy pot heat olive oil. Add meatballs 4 or 5 at a time and cook until well browned. Remove to a plate.

In large pot cook onion in olive oil over medium heat. Add green pepper and garlic. Cook until tender. Add bay leaf, red pepper flakes, oregano and basil. Add tomato sauce and simmer for an hour. Stir in a pinch of sugar and parsley. Serve with meatballs over pasta