Set a large pot of salted water over high heat, and bring to a boil. Trim the ends of the green beans. Once the water is boiling, blanch the beans for 1-2 minutes, until the color is bright and the skins are softer. Remove the beans with a skimmer.
Next, add the baby potatoes to the boiling water. Par-boil (partially cook) for 4-5 minutes. Remove the potatoes and pour out the water.
Using the same pot, sizzle the bacon over medium heat, until it is almost cooked through. Then add the shallots. Sauté another 2-3 minutes. Add the potatoes and salt and pepper well. Sauté 2-3 more minutes before adding the beans.
Once the beans are in the pot, stir and sauté another 3-4 minutes. Add a little oil if the veggies are sticking. When the beans are warmed through and the potatoes are fully cooked, taste for salt and pepper, then drizzle with balsamic vinegar. Serve warm or room temperature.