Heat olive oil in a large pot (with a fitted lid) over medium-high heat. Add sliced bacon and cook, until it begins to brown. Add onion and continue to cook, stirring occasionally, until onions soften, about 10 minutes. Add peppers, potatoes and garlic. Turn up the heat and stir in the red wine. As the liquid bubbles, scrape any bacon bits off the bottom of the pan. Add tomatoes, salt, and 2 cups water (about half of the tomato can). Put on a lid, lower the heat, and simmer for 20-30 minutes, until potatoes are tender when pierced with a fork.
While stew is simmering, prepare the fish. Lay fillets on a board and cut each portion into 4 pieces. Combine salt, pepper and paprika in a small bowl. Sprinkle evenly over fish. Once potatoes are cooked, lay fish on top of stew, cover and continue to simmer for 5 minutes more, until fish is just cooked through.
Serve immediately with crusty bread. Serves 4.