In a large soup pot cook beef in oil until beef is browned. Remove beef and set aside. Mix sugar into the drippings, add onions and cook until golden. Remove onions from pan.
Return beef to the pot and place onions on top. Mix the tomato paste, wine and wine vinegar together and add to saucepan. Place the garlic, mixed herbs, bay leaf, cinnamon and rosemary in a spice bag or tea ball; add to the pan. Season with salt and pepper. Cover and simmer for 2 to 3 hours, adding more liquid if necessary.