Terrorists demand extortion cash in euros

Basque terrorists who for years have extorted money from businesses to finance their battle for independence are now demanding payment in euros.

Abandoning the peseta just as Spaniards are preparing to do, Eta has sent letters to Basque businesses demanding quantities ranging from 30,000 to 60,000 euros (£19,000 to £39,000), the Interior Ministry said.

Traditionally, most executives of companies in the Basque region have refused to pay what Eta calls its "revolutionary tax". But more and more merchants with smaller businesses - and less money to hire bodyguards - may be paying up, said Government officials.

The ministry declined comment.

The euro has existed as an accounting unit for banking and business transactions since 1999.

On January 1, real cash euros will replace national currencies in Spain and the other 11 countries that have adopted the euro.

Eta has claimed or been blamed for 35 deaths since calling off a 14-month-old ceasefire last January.

Police arrested six people suspected of belonging to or collaborating with Eta in a series of pre-dawn raids in two Basque towns today.

The raids were carried out in the Basque capital Vitoria and the town of Lequeitio on the basis of information obtained following an operation last week in which police say they broke up an Eta commando group based in Barcelona, the Interior Ministry said.