Panorama of the Basque country and its competence for self-government

Headnote

ABSTRACT The aim of this article is to present a panoramic view of the Basque Country's capacity and competence for self-government. We have analysed the historical process of industrialization, the effects of the industrial crisis and new possibilities for development of the area's own regional policy based on new institutions (Government and Provincial Councils) that emerged fiom administrative decentralization in Spain after 1980. In the following section, we analyse the scope of authority in EU regions. Some of the cultural and transport infrastructure projects backed by these Basque institutions are studied. These projects have had a considerable impact on the Bilbao Metropolitan Area. The changes observed in the nation state, specifically in Europe, show contradictory effects. However, they have reduced the State's sovereignty but at the same time have prompted the State to retain powers rather than transfer them to lower institutional levels. This clashes with the desire of some regions or historical nations to access greater shares of self-government, such as the case of the Basque Country.

1. Introduction

The historical Basque Country is currently divided between two States: France and Spain. Following the process of administrative de-centralisation carried out in Spain from 1980, the southern part of the Basque Country was divided into two autonomous communities: Navarre and the Basque Autonomous Community (BAC) which is made up of the historical territories of Araba, Gipuzkoa and Bizkaia.

In part two of this article, we will briefly analyse the process of industrialization the Basque Country underwent, with severe de-Industrialization in the seventies and eighties as a counterpoint. The new political institutionalization in Spain, which was a result of the reforms carried out from the previous regime, took place in this economic framework. We will analyse this issue in part three of this article. This process allowed the BAC (and also the Navarre Historical Community) to assume some competences which, together with their singular fiscal system, would enable them to manage issues related to industrial policy, innovation, infrastructures, culture, etc. Part four will deal with these aspects. The last two sections offer an analysis of the European framework in which the different economic, social and political agents must act, with special emphasis on regional government activities.

2. From Industrialization to De-industrialization in the Basque Country