In a wide saucepan, heat a splash of oil and fry the onion, garlic and parsley stalks until soft. Add the olives, chilli and paprika and fry for a minute or so before adding the tomatoes. Simmer gently for 15 minutes.
Add the butter beans and season well with salt and pepper. Bring back to the boil and lay the squid in one layer on top of the tomato sauce. Cover with a lid or double sheet of foil, then simmer gently for 5 minutes.
Check the squid is cooked and season to taste. Mix the chopped parsley leaves and grated lemon zest together, and sprinkle a little over each. Serve with lemon wedges.