Spanish and Catalan leaders said today that power over collecting taxes is shaping up as their biggest dispute as they digest a divisive proposal to give the north-east region much greater autonomy.

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.