Basque separatists clashed with riot police in San Sebastian 14 August during banned rally by nationalist party Batasuna.

Street violence followed death of alleged ETA member in police chase. ETA blamed for 6 small bomb explosions 12 and 29 July. 2 ex-ETA leaders sentenced to 32 years in jail; 10 suspected members arrested. Spanish PM Zapatero and Basque Premier Ibarretxe agreed framework for future talks with ETA.

Division within Spain over possible negotiations with ETA terror group; 250,000 demonstrated against possible talks Madrid 3 June. Following week, ETA blamed for bomb attack on Zaragoza airport. ETA announced end to attacks on elected politicians 18 June; limited ceasefire deemed unacceptable by Spanish opposition, but welcomed by some in Basque Country. Nationalist Juan José Ibarretxe re-elected Basque premier with support from Communists; Ibarretxe subsequently expressed hope extremist Batasuna party could be present in local councils by 2007.

Madrid parliament voted to open peace talks with ETA if organisation disarmed; opposition Popular Party angrily denounced vote. ETA responded to overture with 25 May Madrid car bomb, injuring 50, following string of smaller explosions. Arrest of Batasuna party leader Arnaldo Otegi ordered on allegations of ETA membership.

Regional referendum on greater home-rule – rejected by Spain’s main national parties – derailed by elections 17 April. Moderate nationalist premier Ibarretxe lost 2 seats and failed to win majority, forcing tie-up with Spain’s Socialists or Basque communists, representing extreme nationalist vote. Spanish PM Zapatero offered coalition negotiations if Ibarretxe discards home-rule plans.

Newly-formed Basque nationalist party, Aukera Guztiak, banned from 17 April regional elections accused of being ETA front. Mainstream nationalist premier Ibarretxe plans regional autonomy referendum – opposed by Spain’s central government and opposition – should he win. Seven suspected members of ETA terrorist group arrested; guns and explosives also recovered.

Regional Basque premier Ibarretxe, having narrowly gained regional parliamentary support December 2004, failed to convince Spanish parliamentarians to back his autonomy plan; Spanish MPs voted 313-29 against, citing lack of majority support in Basque Country and threat to Spanish unity. Ibarretxe said would press ahead with regional referendum regardless; elections planned for April. Madrid car bomb 9 February injured 43 near building to be visited by Spanish king and Mexican president. Judges began investigation into separate royal assassination plot 16 February; 2 ETA suspects arrested following day Valencia. Two Basque parliamentarians accused of illegal membership of ETA by anti-terrorism judges.

ETA said 16 January it was prepared to enter talks with government, but Madrid ruled out dialogue until ETA ceasefire. Two days later car bomb explosion near Bilbao; further explosion 31 January in Dénia, southeast Spain - undermining ceasefire hopes.

ETA claimed responsibility for small explosions Madrid and 7 other cities early December. Government officials said bombings sign of desperation and ETA in-fighting. Members of Basque parliament voted 20 December in favour of Ibarretxe Plan for greater autonomy.

Madrid rejected peace pledge made 14 November by Arnaldo Otegi, leader of separatist Batasuna party, saying it did not condemn ETA violence. Explosion at military base Navarra region eve of rally - blamed on ETA - also undermined pledge. At least 15 ETA suspects arrested in police raids 16 November. Former ETA leader sent letter from prison 2 November calling on group to renounce violence.