Just dug out my own wedding budget from a few years ago to see what I would have cut out!
There was a thread about wedding gifts elsewhere. Some people think it's vulgar to even discuss, but there is a very good chance of getting an average cash gift in excess of €50 per person invited. What that basically means is that you should invite as many people as you reasonably think you would like to invite and not worry about the costs.
You should have no trouble finding a hotel to provide an excellent meal for €40 a head (this is key - a good meal, a good hotel and all the people you want there with you are all that's needed, on top of the church ceremony, to make the day special).
There are any number of 'extras' you should not consider on a tight budget:
Wine at the tables (people know where the bar is)
Buffet food later on (people are usually stuffed anyway!)
Reception / Toast drinks
Chair covers
Bridal Car hire
Favours (chocolates for guests, etc)
Videographer
Paying for hotel accomodation for family or bridal party
Other big ticket items you need to focus real attention on economising on are:
Honeymoon - modest hol
Church / Reception music - keep it basic
Photographer - Friend with a very good camera?
Wedding Dress (see Annie84's post)
Suit hire / bridesmaids dresses - Groomsmen/Bridesmaids organise their own
Flowers and invitations - don't go nuts
Hair / Make-up - Do it yourself
Bottom line is that provided you get a good deal on the meal, the costs per guest will be largely covered by gifts. It's the overheads such as music, wedding attire, accomodation, honeymoon, photographer, etc that need to be controlled.