Baked Chicken Meatballs with Peperonata

Name: Baked Chicken Meatballs with Peperonata
Ingredients: 3 red bell peppers, cut into strips; 1 1/2 tablespoons extra-virgin olive oil, divided; 1 1/2 tablespoons drained capers; 1 teaspoon red-wine vinegar; 1/8 teaspoon hot red pepper flakes; 3 slices Italian bread, torn into pieces (1 cup); 1/3 cup milk; 3 ounces sliced pancetta, finely chopped; 1 small onion, finely chopped; 1 small garlic clove, minced; 2 tablespoons extra-virgin olive oil, divided; 1 large egg; 1 pound ground chicken; 3 tablespoons finely chopped flat-leaf parsley; 1 tablespoon tomato paste; Accompaniment: garlic bread made from remainder of Italian loaf