Piran/Portorož in Slovenia. It's certainly not a typical town but rather a tourist town.
A bit like Venice, which has 20 million tourists a year for a population of 200k. Portorož probably isn't far off from this population to tourist ratio, but with a population that's 100x smaller.
That having been said, it's true that Europe has many walkable cities and they don't even have to be small villages.
