The Italian Navy and RA was a big thorn in the RNs side, the loss by Italians to the RN alone (Not Merchant Shipping) was:
6 Cruisers
15 Destroyers
37 Submarines
58 in Total.
Which doesn't seem much as the RN had 332 vessels in 1939, and 885 vessels saw service in World War 2. They did only lose 278 vessels, that's 1/5 to the Italians .
I've read alot of that had to do with the Taranto raid (ah, that wonderful Stingbag!). After that the Italians moved their main anchorage further north and were extremely cautious in deploying their capital ships.
the lanc was telling me the other day, swordfish pilots werent scared of being jumped by 109's cos they can easily outmanoever them and lose them, it was the flak they were scared of
Especially considering the French had already surrendered . . .
But even if the French were in the war, I doubt very much that the Germans would have feared them.