Spanish politicians tonight greeted the IRA’s announcement that it was laying down arms and expressed hope that the move would encourage the armed Basque group Eta to do likewise.

PARTIES in Spain’s Basque region prepared for horse-trading yesterday after a key regional election served up a dramatic shift in their political landscape — a rebuke to the nationalists pushing for autonomy, and the emergence of a little- known, pro-independence party as possible kingmaker.

The Basque parliament has approved a proposal for virtual independence from Spain, with last-minute support from a formerly-banned party seen as the political wing of the separatist group ETA.

The Basque parliament tonight approved a proposal for virtual independence from Spain, with last-minute support from a formerly banned party seen as the political wing of the separatist group ETA.

Basque MPs gathered today to vote on a hotly-contested plan that would turn their troubled region into a virtually sovereign state – the stiffest challenge to the Spanish government since the Basque country gained broad autonomy 25 years ago.

Hundreds of people carrying Basque flags assembled peacefully in the historic Spanish town of Gernika to protest the proposed outlawing of a separatist party allegedly linked to terrorism.