3 explosive devices caused damage in south west France 18 March; no immediate claim but ETA suspected. ETA told media ready to make “firm commitments” to non-violence if “attacks” on Basque homeland end. In run up to 27 May municipal elections, high court judge declared Basque National Action (ANV) party legal 29 April. Supreme Court hearing on eligibility of newly formed Patriotic Socialist Union (ASB), also accused of ETA links, scheduled for 16 May.

Mass Madrid rally held to protest release to home arrest of hunger-striking former ETA leader Jose Ignacio de Juana Chaos, convicted of 25 murders. Madrid court acquitted outlawed Batasuna party leader Arnaldo Otegi of praising terrorism: before trial Ortegi told media self-determination should be achieved through democracy. Separatist politicians applied to have new party, Patriotic Socialist Union, registered for May local elections. 31 March Basque nationalist rally allowed on condition no mention of new party. Supreme Court decision on party ban pending. Police on alert after arresting 8 suspected ETA members in Andoain 28 March and seizing explosives in Navarra and Guipuzcoa 30 March.

Barakaldo station near Bilbao bombed 5 February. Socialist party and opposition Popular party members held joint march against ETA in Bilbao 10 February. Supreme Court cut from 13 to 3 years sentence of former ETA leader Inaki de Juana Chaos accused of inciting terrorism in news articles; his hunger-strike continued. National court sentenced Belen Gonzalez Penalva to 467 years prison for 1985 ETA car-bombing; maximum time she can serve is 40 years.

ETA confirmed responsibility for December Madrid airport bombing, but said March 2006 permanent ceasefire still in force. ETA also suspected over explosives found near Amorebieta, Basque country. In unusual step, separatist Batasuna party called on ETA to maintain ceasefire and joined Bilbao peace march. Mass peace rallies held in Madrid and Bilbao 13 January despite boycott by Popular Party. PM Zapatero told special parliament session he had erred in predicting peace progress just before attack. Basque Premier Juan Jose Ibarretxe testified in court over April meeting with Batasuna 31 January. Supreme Court declared Jarrai, Haika and Segi youth groups “terrorist”, citing links to ETA, and increased prison sentences of 23 activists. Youth protesting ruling clashed with police and attacked Socialist party offices in Basque Country and Navarra.

Government suspended plans for dialogue with ETA after group claimed responsibility for 30 December bomb attack on Madrid Airport; 2 missing, 26 injured. Protest in Madrid demanded complete end to peace process. Earlier in month, government had refused to confirm or deny media reports of first round of direct talks.

After spate of low-level street violence in region, including arson attack on 2 policemen in Bilbao, Prime Minister Zapatero said could be no dialogue with ETA if violence continued. Opposition Popular Party issued 10- point list of demands to government on issue, including call for end to any secret meetings with ETA. Separatist Batasuna Party blamed deterioration on authorities, citing series of court cases against ETA members. French police confirmed ETA responsibility of weapons theft in October; said ceasefire had not affected group’s activities in France.

High Court confirmed Batasuna Party leader Arnaldo Otegi and 37 other party members to face prosecution for membership of terrorist organisation, as police launched investigation into ETA funding. Low-level street violence continued in region. French officials said ETA prime suspect in theft of 350 guns from warehouse in Nimes 23 October. Madrid denied press reports secretly engaged in talks with ETA in Norway.

Government expressed concern over low-level “street violence” including series of minor firebombing incidents in San Sebastian, but insisted peace process on track. Separatist Batasuna Party said government stalling start of talks. Demonstrations for “self- determination” held in several towns 30 September.

Separatist ETA said peace process in crisis as result of ongoing Spanish and French arrests of members. Group threatened to “respond” if policy continued; government denied promising to halt arrests. Large pro-independence march held in Bilbao 25 August.

Talks between government and ETA expected to begin August; Batasuna party leader Arnaldo Otegi said parties should not impose conditions on process. PM Zapatero denied allegations he had agreed to ETA preconditions.