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As parliament resumed on Tuesday, Basque Government President Patxi López confirmed he was still "negotiating" the transfer of active powers over employment and hoped that the PNV would not jeopardize talks.

The Basque premier made the declarations following his first meeting with parliament after the summer break held, as is traditional, at the Palacio Miramar in Donostia-San Sebastián.

The lehendakari opened his speech by offering his support to the Gipuzkoa capital''s candidacy as European Capital of Culture for 2016. He stressed that his government were working to assume active power over employment policy and added that he hoped "others will do the same and not turn against us," in a clear reference to Basque nationalist parliamentary group, the PNV.

López also affirmed that the budget for 2011 would shortly be presented. While indicating that it would include some "austere" measures, it also represented "the foundations of some profound reforms that Euskadi needs," signalling his belief that the Basque Country was “on its way out of the recession”.

Violence

The lehendakari declared that that "little by little" terrorists were being "rounded up" making the atmosphere in the Basque Country "more breathable".

He added that "the battle against terrorism is being won". The reduced presence of violence, he said, was notable in the tourist sector, which in 2008 made up 5.3% of GDP in the Basque Country.

However, the Basque premier also added that, while ETA have "almost disappeared", they maintain their ability to cause harm.

In López’s judgement, and with this "macabre" reality in the balance, the Basque Left should "cut the umbilical cord that ties them to violence and to ETA once and for all". As long as they don''t, he said, they will forever be considered as "supporters" of the armed group.