Only 90bhp so tow about a tonne max & you will be ok. Max tow weight is quoted at 1300kg for 2.0hdi but this is just a technical figure, you wouldn't want to tow a caravan of this weight with it.
We had a Xsara Picasso 2.0 diesel from 2004. I think the kerb weight and max tow was 1300kg so the 85% weight would have been around 1100kg. We towed about 950kg and the hills were hard work for me and the car, it needs more power which just isn't there. We have recently used a 2.0 diesel Galaxy which has 140 bhp rather than the 90 bhp of the Picasso and that provided a much better and safer experience.
Amazing family weekend with old steam engines, classic car displays, market stalls, and full catering and bar. And camping on site - Save £25 by booking in advance.