Preheat oven to 325°F.
Cook bacon in Dutch oven until crisp.
Remove bacon and reserve.
Brown beef in bacon fat thoroughly.
Remove beef and set aside.
Sauté onions and carrots until softened.
Add garlic and tomato paste.
Stir and cook briefly.
Sprinkle flour and mix well.
Pour wine slowly while stirring.
Add stock, herbs, beef, and bacon.
Bring to a gentle simmer.
Cover and bake for two hours.
Add mushrooms and pearl onions.
Cook uncovered thirty minutes more.