I'm looking for a good European chess tournament to play that would be good for my age and playing strength. Perhaps even meet more chess player close to my age group. Any suggestions?
You can give a try to the monthly "First Saturday" round-robin tournaments in Budapest. (You probably have heard of it, it has been in existence for like 22 years.) The city is nice, the venue is downtown, the local girls are beautiful, the majority of the players speak/understand English, maybe the only issue can be that your rating qualifies you for group "FM-A", where the opponents are rated between FIDE 1850 and 2100. But 9-11 games are guaranteed.
I played in Reykjavik two years ago and it was fantastic!
Of course that's not quite Italy …
Closer to your specification is probably the Open in Pula. I have never been there, but from what I've heard, if you want to combine beach holiday and chess, that's a good opportunity.
I did play an open in Italy as well, quite nice, but also quite small.