I. Presentation.
Mr President, Fellow Members of Parliament
Ladies and Gentlemen, good morning to you all.

It is an honour for me to submit my candidature for the presidency of the Basque Government to this house, recalled after the elections held on May 13. I have based my candidature on a programme and series of undertakings that I wish to present for your consideration today at this investiture ceremony.

I refer to a programme and series of undertakings that have been devised in an attempt to respond to the needs and aspirations of a plural society - ratified recently in the ballot boxes - but also, one which, over and above the wide range of political sensibilities, is united around a common feeling of belonging and a shared objective, namely, to achieve peace and, ultimately, the harmonious coexistence of our people.
For this reason, based on the maximum respect for each and every one of the inhabitants of the Basque Country who have, with their vote, supported the range of political options represented here, I wish to propose to this Parliament a forward-looking programme that, rather than closing doors, seeks to open up a new way towards the future and, rather than wishing to impose its criteria, seeks to share common principles.
Accordingly, I am going to set out a series of undertakings that will provide the guidelines for the measures to be taken by my government. These measures are designed to make headway in resolving the problems that exist in our society, with the hope that they will receive the majority backing of this house.

It is my wish, therefore, and, I hope, of everyone assembled here, not to deepen political divisions or, simply, face the governability of the Basque Country based on the game of parliamentary majorities or minorities, but to construct, between all of us, a future from which no one should be excluded.

For all these reasons, and irrespective of any direct support in favour of my possible designation as President, I wish to advise you of my intention to initiate a new stage in which a dialogue with all political parties represented in parliament in accordance with the democratic and legitimate wishes of Basque society, will be a priority issue.
We must all work to restore a sense of political and personal confidence, that has suffered greatly because of the actions we have taken in the past.
If we really wish to be in command of the situation, we, the political representatives of Basque society, are obliged to restore an atmosphere of goodwill, confidence and normality in our relationships, in order to respond to the problems and challenges to which Basque society will have to face in the near future.

In this new legislature, we must be firm in our resolve to construct an integrated and united society that will be model of social welfare solidarity in Europe and which, moreover, will bring peace and social harmony.

Although we have been successful in the past in overcoming other challenges of an economic and social nature, we cannot resign ourselves to suffering impotently the terrible and dramatic effects of death and assassination for another thirty years.

Although, as a society, we have demonstrated our spirit, vitality and determination in facing up to our economic, technological and cultural challenges in order to adapt to a world in constant evolution, we must, once and for all, stand up to what was called, so many years ago, the "Basque problem".

This is the undertaking we have made to Basque society and to which we must respond without delay.
Each new murder, each new act of violence, each new attack on personal safety, is a blow to the conscience of a society that is tired of violence, that totally rejects the wrongdoing of ETA and which asks its political representatives for unity and solidarity with the victims of violence, but which also demands answers, solutions that will prevent more deaths, more pain and more suffering.
That is our responsibility, and in the face of such responsibility I am not willing to look the other way, I refuse to resign myself to doing nothing.
So as not to repeat the errors of the past we must learn from them. But we must always look to the future and move forward. That is what fills me with hope and if I obtain the backing from the majority of this house I am determined to put this ideal into practice.

Let us learn, therefore, from past experience, take stock of what has been achieved, in order to take full advantage of the new opportunity that Basque society has afforded us in order to build a new future.
I should like to divide this speech into three main sections:
Firstly, I will assess the progress that has been made and the experience gained during the last legislature.
Secondly, I will offer a number of reflections about the new opportunities afforded by the recently-held elections and,
Thirdly, I will set out the undertakings and policies that will provide the basis required, I believe, to build a new future.

In short, to do this, we must uphold the fundamental concepts of life, dialogue, respect and solidarity which formed the bases of the undertakings I made at the Kursaal Centre in Donostia-San Sebastián and of the electoral programme endorsed by Basque society on May 13.

This is the aim of the programme I wish to set out here.

II. The progress made to date. The experience of the past .
My aim is not to censure but to set out a series of experiences that we must all share in order to learn from the past.
1999, the date on which the last government was constituted might seem an eternity ago, but it is necessary to remember that the last legislature began with a very different scenario to today's.
For the first time in many years, we had the opportunity of initiating a peace process but unfortunately the hopes we all shared at that time were not fulfilled.

After a period of 14 months, ETA decided to break its truce, thereby dashing the hopes of the vast majority of the Basque people in general as well as militants of Euskal Herritarrok.
In its state of paranoia, ETA bore exclusive responsibility for this decision which has, once more, brought suffering, injustice and death to our people.

Perhaps it was ETA's intention to use the truce to impose its own plans instead of leaving the political parties and Basque society itself to adopt decisions on its future by democratic means.
Perhaps we were not capable of making gestures of goodwill, humanisation and solidarity that would have made such a significant contribution to the peace process.

Perhaps I was not capable either of interpreting the conditions imposed by other political parties and believed, in accordance with society's wishes, that there was a way forward when, in reality, there were only obstacles.
Perhaps, as the person who acted as intermediary between the Spanish Government and ETA said some time ago, the truce was finally broken due to the impatience of some and the inflexibility of others.
There are a great many question marks. There may be some truth to all these hypotheses. It is possible, furthermore, that not enough time has gone by in order to analyse dispassionately the reasons that prevented us from being taken advantage of this great opportunity.

Although this may seem odd, I am under the impression that if there had been no truce the discussions that are going on now within the MLNV (Movement for the Liberation of the Basque Nation) would not be taking place. It seems to me, moreover, that, beyond the savagery and murders that have been committed, by breaking the truce ETA has become a prisoner of its own decision. I feel, in short, that time has not passed in vain for anyone.

Recently, EH declared that: "it is clear that the vast majority of Basque society does not identify with the armed struggle of ETA." I agree with that statement wholeheartedly.
Beyond ethical, political and moral reasons, can there be anything more socially preclusive for an organisation such as ETA than going against the wishes of the Basque people, whose interests it claims to defend?
This is the first conclusion we must draw from all this and we must express our message to ETA in the clearest terms: a new scenario in which there is an absence of violence will not be credible unless ETA undertakes to respect the wishes of the Basque people and renounce the use of force to impose its policies on the citizens of the Basque country.
The Basque political parties must also draw on their experience during this period.
As I outlined a few moments ago, I am sure that a dispassionate analysis will be possible only after a number of years have gone by, but I dare draw at least one preliminary conclusion which, although extremely evident, is no less profound: during the truce there was no policy to promote goodwill and dialogue - just the opposite.
Presented for the first with a period which, although not completely peaceful, was at least free of deaths and murders, Basque society looked on in astonishment as an unprecedented period of political confrontation unfolded. We were afraid of dialogue!

A fear of dialogue that led, firstly, to a sense of mistrust and then confrontation.
During the truce we broke a number of communications links that we were unable to restore subsequently, and this was in spite of the fact that after the return to violence, the vast majority of the electorate appealed for calm, solidarity and unity.

The unlawful, inhuman and dramatic pressure exerted by violence on the one hand, and confrontation and lack of dialogue on the other, led to such a level of political and social tension that any chance of moving forward was impossible.
As President, I appealed with all my strength to the common sense of all political parties, in order to return to normal relations. But this was not possible.
Assuming responsibility for this state of affairs, I decided, therefore, to appeal to Basque society in order to break the political confrontation that even threatened to take a grip on society itself.

III.- The current situation. A new opportunity.
On May 13, Basque society responded with good judgement and common sense. Once again, it gave an example of democratic participation, serenity, plurality and maturity, for which I wish to express my gratitude to this house.
Basque society has spoken. We must simply accept its word and respect its decision. I am convinced that this is way to a solution: respect the will of Basque society.

I am not going to give way to the easy temptation to interpret the results in terms of prizes or punishments, nor in terms of the ratification or rejection of previous policies. Nor even with regard to the support for specific political parties. More eloquently than words, the composition of this house reflects the mood of our society.

After the May 13 elections, a new stage has opened before us, a new opportunity, a door of hope. We must not disappoint the people that have put their trust and hope in us and in our ability to provide answers and solutions - not problems.

For this reason, over and above the different political proposals represented in this parliament, I believe that it is my obligation and responsibility to interpret the recent democratic message that has been expressed by the majority of Basque society in terms of aims, principles, attitudes and procedures to find solutions.
In my opinion, the message has been clear. The immense majority of Basque society has one basic objective:
· It wants peace. It wants the normalisation of the political situation. It wants peaceful coexistence.
- It supports two principles:
· Non violence and dialogue, an inseparable binomial to attain these objectives
-It defends a number of attitudes:
· The concept of understanding instead of confrontation.
· Social integration as opposed to the strategy of the division of two communities.
- It accepts the fact that in order to find a solution, there must be:
· Respect for the way we are, our identity.
· Respect for the plurality of all ideas.
· Respect for the institutions we have set up.
· Respect, in short, for the wishes of Basque society, for the decisions we have taken in the past and those we might take in the future.

These are the aims, principles, attitudes and procedures that have guided my political and personal conduct in the past and will guide them during this legislature.
They will provide the basis for the development of the commitments on which the political and administrative programme of my government and of the parties that support this during the forthcoming legislature are based.
It has been my wish to identify these as the commitments that are required to build the future and I submit these as a personal and political contract with Basque society.

IV.- Commitments to building a new future:

These are four major commitments that I should like to share with the political parties present in this house.
I intend to develop an open policy to embrace every sector of our society.
The future of the Basque Country depends upon us. No one can be left out of this design for the future. We must all put our shoulders to the wheel, irrespective of the majorities or minorities that our parties might have at any moment in time.
Let us learn from the past, let us not forget, but let us look to the future with generosity and high ideals.

I am now going to develop in more detail the four commitments required to build the future. Four commitments that together constitute a personal and political contract with Basque society.

IV. 1.- An ethical commitment to life and the Human Rights and Liberties of all persons.
I should like to begin this section by remembering the families of all the victims of terrorist violence and, especially, the 32 people assassinated by ETA after the breaking the ceasefire. I should like to express my own personal solidarity as well as that of the Basque institutions with their pain and suffering. In this sense, I wish to make special reference to Fernando Buesa, our fellow member of parliament and spokesman of the Socialist Party during the last legislature.
The future of our People cannot be written in terms of death, assassination and the violation of human rights.
Life is the highest and most basic asset. No one has the right to cut it short for any reason, and much less in the name of the Basque People.
This ethical undertaking is a basic principle for coexistence and goes beyond any legitimate political sensibilities and disagreements that each of us may defend.
There is no doubt about this. There should be no political division on this issue.

I have never had, and never will have, any kind of disagreement with any party or political representative in condemning any violation of the individual human rights, whoever the perpetrator may be.
This has been, and will be, my first objective, my basic priority as a Basque and a democrat.
We must not take a single step backwards in the solidarity with the victims of violence and terrorism. Not a single step backwards in the defence of the human rights and liberties of all individuals.
I want to underline this last point. "Of all individuals". Because everyone, even those who have committed crimes, are entitled to a number of rights that those of us in power must respect, defend and guarantee.

This is no false "middle of the road" policy. The defence of human rights does not admit the use of double standards. We must not fall into the political hypocrisy of denouncing cases involving the violation of human rights and look the other way when it is not in our interests to do so.
Anyone who denounces torture and the sending of prisoners far away from the Basque Country, but who fails to condemn an attack on human life and the liberty of our fellow human beings, has no credibility or moral authority before society.
Neither can anyone who justifies the legitimate use of violence and assassination to fight against terrorism or who fails to condemn the Franco dictatorship give lessons on ethical behaviour.
Human rights are an issue that affects everyone without distinction, because we are all human beings and we, the political representatives of Basque society, must show our commitment publicly to respect and defend the rights and liberties of all human beings.
This being a major universal ethic, we must not forget that today ETA is responsible for the violation of human rights and the lack of freedom in our society. ETA will have to face us, not only because violence is ethically and morally condemnable but because, moreover, it does not respect the wishes of the vast majority of the inhabitants of the Basque Country who demand that ETA abandon its armed struggle for ever. My priority at all times will be - above all other issues - an ethical commitment to life and the defence of liberty and the security of all individuals.

For the development and materialisation of this commitment, I intend to instigate a series of initiatives that will draw up during this legislature, both in the political and social arenas and within our police forces.
a) In the political-social domain:
Among the initiatives that are to be drawn up, I should like to highlight the following:
First.- Promote an ethical manifesto of an inter-institutional nature that will constitute a political and social model of conduct and behaviour in the face of violence, and comprises:
· An absolute respect for the human rights and liberties of all individuals, without distinction.
· A commitment to the active defence and solidarity of all those who have suffered and suffer violence and terrorism and any threat to their physical well-being, freedom and security.
· A most categorical rejection of all kinds of violence and extortion and the demand that ETA abandon its arms once and for all and leave it to us, the Basque people, to resolve our own problems.
· Our willingness to develop any initiatives that might contribute to eradicating all kinds of violence and create the conditions required to attain a state of coexistence in peace and liberty.

Second.- Increase our active solidarity with the victims of terrorism.
· Reception Centres for Victims of Terrorism will be developed. In this sense, extra funding will be allocated in the general budget of the Autonomous Community of the Basque Country to establish an permanent infrastructure of qualified personnel in order to provide closer and more direct attention to the families of the victims of terrorism and those who suffer any kind of violence, blackmail, extortion or persecution.
· The Government will promote a permanent commission to care for, support and assist the victims of terrorism, open to the participation of social, religious and civilian groups and political representatives so that they may channel and propose joint actions that will allow them to project an image of the solidarity of Basque society and the ethical, moral and material recognition of the victims of terrorism.

Third.- Promote the active defence of human rights and the liberties of all individuals.
· An observatory will be promoted to defend human rights and the liberties of all individuals. In my opinion, this observatory should include members from all the departments and institutions involved as well as representatives of the Judiciary, the University, the Church as well as civilian and pacifist movements.
This organisation will defend especially the rights of those groups that suffer the physical and psychological violence that degrades the ethical values of a society.

As President of the Basque Government, I intend to commission a person or organisation of recognised prestige in the defence of human rights and liberties with the design of this project, in order to attain the maximum consensus of opinion about this initiative, before it is put into motion.

Fourth.- Involve Basque society in an ethical commitment to human rights.
In this regard, I intend to promote a permanent campaign of information and social awareness to propitiate, especially among young people, a respect for human rights and the defence of justice as fundamental values for the coexistence of all the peoples of the world.

b) In the political arena:
The development of a policy of security against terrorism, in any of its manifestations, is one of the basic pillars of the ethical commitment to the defence of life and human rights.
I believe that the moment has come to forget the wounds and divisions that have arisen as a result of the constant and terrible accusations of connivance with the perpetrators of violence that have been laid against our legitimate and democratic government and against our police forces which have shown their firm and permanent commitment to freedom throughout their history.
These manifestations have had special consequences for the Basque Police who, in addition, have had to withstand a constant barrage criticism of their efficiency over a long period of time. Any doubt about the commitment of the Basque institutions and especially the Basque Police, to the fight against terrorism must be dispelled for ever and must be repaid with the same sense of loyalty with which the Basque institutions have for the institutions of the State in these matters.
I should like to reiterate the unequivocal will of the Government to pursue with great resolution all kinds of violence and to detain anyone who infringes the liberty and security of others.
In this sense, we are going to continue intensifying police and security measures to adapt the activities of the Basque Police (Ertzaintza) to the new scenarios of the struggle against ETA and the new forms of street violence.
For this purpose, the Government will develop three packages of measures:
1.- Increase its co-ordination with the State.
· The work of the Security Committee created last year on the initiative of the Basque Government will be extended and the mutual collaboration in the work of surveillance and protection of public figures and of persons who have received threats will be fostered, in accordance also with the Plan agreed upon the initiative of this Government in the Security Council.
· Likewise we demand the incorporation of the Basque Country in the Schengen Agreement, agreed by this parliament on November 19 1999.
· We wish to promote the participation of the Basque Police in the co-operation between the police forces of France and Spain. This fully operative implication must begin with the appointment of a liaison officer from our police force to work within the Secretariat of the Ministry of the Interior. This is still pending realisation since it was proposed by our Government in March 1998.
2.- Reinforce the information units and their co-ordination with the public security department.
Achieving the maximum co-ordination between information units will continue to be a priority objective of our security policy.
For this purpose, we will increase the number of police involved in intelligence gathering operations, guaranteeing their efficiency and the co-ordinated development of already-developed police activities will be fostered in specific areas and at special times and in special situations.

3.- Dimension police resources adequately.
The main actions to be taken in this field in the future to enhance the efficiency of the police forces, will include:
- Analysis and drafting of a Master Plan to reorganise and dimension Units in order to obtain better prevention ratios.
- Increase staffing levels in the Basque Police as, clearly, the 150 new members approved by the Security Council on November 20 2000, are insufficient. We are approaching this matter with a totally flexible attitude, using retirements and other mechanisms that will allow staffing levels to be adjusted in accordance with the development of terrorism.
- Strengthen the co-ordination of crime prevention with Local Police Forces in Municipalities of sufficient size, in accordance with pilot schemes that have already been conducted over recent months and have yielded very encouraging results.

This set of measures will be submitted by the Minister of the Interior to the Parliamentary Groups in the most appropriate manner in order to guarantee the necessary discretion and confidentiality in such a sensitive issue as this one is.

Until now, I have dealt with the most significant political, social and policing measures which we have undertaken to carry out in the defence of life and human rights and the liberties of all individuals.
This ethical undertaking is a common ground that we must all share. It is the first step on a road that will allow us to go forwards together in search of new areas of common ground to bring about the normalisation of the political situation and coexistence in the Basque Country.
The truly great quality of democracy is its ability to render the recourse to violence, blackmail and coercion completely unjust and futile, to defend the legitimate political projects of all individuals under equal conditions, so that it will be society itself that decides on its own future.

IV. 2.- A political commitment to dialogue in order to find peace and achieve peaceful coexistence.
My second major undertaking is an unequivocal commitment to dialogue.
Dialogue as an instrument to achieve peace on the one hand, and on the other, as a way to provide a solution both for the problems of political normalisation and coexistence in our society.

I have said on numerous occasions that violence is not a necessary consequence of the existence of a political conflict. There are many places where, despite the existence of political conflicts, there is no violence.
It is, therefore, necessary for us to draw the difference between peace and achieving our legitimate political projects.

But, having seen this separation between peace and political projects, we have to speak out and we have to do it now. There can be no "time outs" for dialogue.
The political confrontation we have experienced in the recent past has allowed us to hurl arguments, insults and defamatory remarks but this has prevented us from speaking.
We have shouted at one another, but we have not spoken.
The time for verbal insult has passed. Now is the time for political and institutional dialogue.
To reject dialogue is to reject the possibility of finding a solution. Renouncing dialogue leaves the problems unsolved.
For this reason, in my opinion it is necessary to favour dialogue with initiatives to create goodwill, democratic tolerance ad coexistence.
In this sense, the way to dialogue must be developed in a series of stages:
- A preliminary stage of goodwill.
Verbal goodwill, political goodwill and social goodwill, in order to restore trust in each other. We have to rebuild the bridges of personal relationship that we have been breaking down, before we can propose any initiatives.
- A second stage of democratic tolerance.
Based on a shared ethical commitment to the defence of life, we have to learn to assume with naturalness, tolerance and respect, the political aims of all individuals.
No one can oblige others to renounce their ideology or political projects in order to establish dialogue.
We cannot punish people for their ideas. We must not continue to use legitimate concepts and political projects like missiles.
The Constitution, the Statutes, Self-government, Independence, are not absolute, unchanging, closed, inflexible terms, without nuances. They are only concepts, ideas, instruments at the service of the coexistence between persons and between peoples, which must be recognised as such and, therefore, are worthy of respect and democratic adaptation
All political projects can be proposed and carried out, provided that they are defended by peaceful means and democratic procedures are respected scrupulously.
This is a major element of democratic tolerance that we must all accept.
- The third stage. Foster a culture of coexistence.
We must eliminate the barriers to dialogue. We have to abandon the culture of confrontation for one of coexistence.
For this reason, we must promote a multilateral dialogue willing to listen and understand the reasons of others. A dialogue that seeks not to isolate but to integrate.
We must learn how to coexist and discover the true meaning of sharing, respecting, collaborating and coexisting. Because we play an important role in building a lasting peace: political parties, economic agents, trade union organisations, social movements, the Church, the University and the media. We can and must do our bit.

Until now, we have tried to develop this strategy using several different political and social instruments. In the past, we have tried to find peace through several initiatives - some legitimate and others not so.
My solemn proposal to this house is to consider, during this new stage, the Basque Parliament as the maximum legitimate representative of Basque society, at the centre of the initiatives designed to achieve peace, on the one hand, and on the other, attain the normalisation of political life.
We do not need to invent a new forum. Let us use the forum that already expresses the will of our society by democratic means. Let us start the process now.

To initiate this process, I wish to announce my intention to begin, during the next parliamentary session in September, a debate on the pacification and political normalisation of the Basque Country and on dialogue as an instrument to achieve social coexistence.
During this debate, ee will speak openly, without insults, without defamatory remarks. In an atmosphere of tolerance and respect for democracy.
Let us speak clearly among ourselves and to Basque society as well.
Because Basque society has the right to know:
- How each of us sees the problem of violence and political conflict.
- In accordance with this diagnosis, what the therapies we intend to apply are.
- What principles we can share.
- What procedures we propose to favour dialogue.

We cannot expect, obviously, during this first assembly, to achieve a consensus of opinion on basic issues, but we should be able to articulate instruments and establish procedures that will allow us to continue making progress.

IV. 3.- A democratic commitment to the respect for the decisions of the citizens of the Basque Country.
The third axis, my third solemn undertaking before this house, is the democratic commitment to respect the will of Basque society.
To respect its decisions at all times. So simple, but so conclusive.

The first step to finding a solution would be for all of us to undertake to respect the wishes of the majority of Basque Society. Sincerely, I believe that respect represents the true "keystone" of our coexistence, and is the ideal we must strive to achieve.
A respect for decisions, for institutions and the legal bodies that have been set up till now in accordance with the wishes of the majority of Basques, and respect, also, for any proposal to change, modernise or modify these.
A respect, in short, for the past, present and future will of Basque society - freely expressed.
How can we materialise this commitment?
My proposal is to hold an assembly on self-government in October, to coincide with the twenty-second anniversary of the Statutes of Gernika, in which we will be able to deal openly with individual initiatives to respond to the wishes of Basque society with regard to the desired degree of self-government.

At this assembly, we will all have the opportunity of saying clearly whether we accept or not the decisions provided by the Parliament with regard to the full compliance with the Statute of Gernika, as well as evaluate the negative impact of certain political initiatives of the Spanish government on our powers of self-government.
We will also be able to assess the effect of the debate on the integration process of the European Union, with regard to sovereignty and direct participation in of regional governments European institutions. And, lastly, we will have the chance to propose instruments that will allow us to advance towards new areas of common ground for the modernisation and adaptation of our Statutes, in accordance with the procedures set up for this purpose.

I believe, sincerely, that this is not only the right time for such a debate but that this cannot be postponed any longer. Twenty-two years since its approval and in spite of repeated political admonitions and the unanimous position of the Basque Parliament, the Statute of Gernika still has the status of an Organic Law pending enactment, the development of which has been subordinated to the political convenience of those who have held power in the Spanish government..

Furthermore, in recent years we have witnessed a gradual weakening of our already-assumed powers of self-government through State legislation.

Throughout the last election campaign, virtually all the political parties present in this house declared their defence of the Statutory Pact. Some have even used the fanatical defence of the Statute as a missile against nationalism or have presented this as a basis for their political programme.
Therefore, the time has come for all of us to comply with our election promises and to materialise this commitment to the Statutes of Gernika in their entirety.
It is time to respect the majority will of Basque society, expressed in the referendum held twenty-two years ago.
We must debate this question openly, once and for all, firmly and strictly.
The moment has come for the inhabitants of the Basque Country to know what proposals and undertakings each of us have made in order to comply with the Statute in its entirety.
We must do this, not only out of a respect for Basque society, but out of a sense of responsibility and coherence with the unanimous decisions concerning this issue adopted in this Parliament, the last of which was taken on October 20 1995, i.e., almost six years ago.

No longer can we limit ourselves to rhetorical denunciations. Actions speak louder than words.

I can say that my Government has the firm will to mobilise any legal, political and social resources that may be required to achieve full compliance during this legislature of the Statute of Gernika, because, twenty-two years later, not only is this a question of democratic responsibility. We are not willing to allow the citizens of the Basque Country to be deprived of higher levels of welfare and quality of life through self-government, because this is our right.

In this regard, I also wish to announce my intention of proposing the setting up of a specific Parliamentary Commission to carry out an in-depth examination of our self-government. This Commission will have two short-term objectives: firstly, to study the degree of respect for and compliance with the current statutory agreement and, secondly, propose a number of options to update and modify this agreement, in accordance with the opportunities available and the level of respect for the wishes of Basque citizens.
In this regard, and in order to tackle this issue, namely, the respect for and compliance with current statutory agreement, I wish to inform you that the Basque Government will propose to the Spanish Government the urgent formation of a Negotiating Policy Commission at the highest level which will work in close co-ordination with the aforementioned parliamentary Commission.

Within a period of six months and before the end of this session of parliament, the Basque Government will request that a new monographic assembly be held in the Basque Parliament in order to assess the results obtained and, if appropriate, adopt any new measures and initiatives it may consider necessary.

On the other hand, this specific Commission, which will given the job of taking a more detailed look at the question of self-government, will deal with the subject of arranging a democratic debate on the legitimate options of modernisation and adaptation of the Statutory Agreement currently in force.

This democratic debate shall be based on the opportunities offered by the current Statute and on the principle of respect for the wishes of the inhabitants of the Basque Country.
Because it is necessary to remember that the current Statutory Agreement does not represent a definitive or immutable framework. Conceived in 1979, it was designed as an instrument open to political consensus and adaptable to any changes that of Basque society.

The Statute of Gernika, considered as a whole, represents, therefore, a precise and valuable instrument which has been furnished with additional provisions and modification procedures that offer a large number of ways to achieve coexistence through the discovery of new, common ground.
We must resort, therefore, to this open construction of political and social consensus, with respect for what has been created until now in accordance with the decisions adopted at each moment in time by Basque society and with respect, also, for the new realities and sensibilities of today.
Because he who does not commit himself to comply with the Statute of Gernika in its entirety as a public agreement between the Basque Country and the State, does not respect the democratic legitimacy of the Basques. But also, anyone who demands that the Basque People give up their options (dependent upon winning the necessary majorities to do this in the future), to bring about changes and modifications through the development of the additional provision of the Statute of Gernika, shows no respect for our democratic legitimacy either.

I consider that, as soon as this is possible, we must speak about these issues calmly and in an open and democratic manner, based on the acceptance that Basque society can be consulted to decide its own future. What is wrong with that?

The new European reality requires that we all redefine and adapt to new concepts and situations. Ideas such as shared sovereignty, subsidiarity, free association, direct participation of non state governments in the decision-making process, regional and cross-border co-operation, relations with the European Union, etc. These are issues that are going to configure the European scenario over the coming years. No one should be shocked about this.

In all cases, including the aim of modernising the terms of our self-government, we must be capable of assessing the degree of progress and consensus gained within a reasonable, pre-agreed and jointly-established timeframe. When this period has elapsed, I intend to ask that a parliamentary session be called at which we will divulge our agreements to the public and will establish the appropriate initiatives and proposals for the search for new areas of common ground.

IV. 4.- A commitment to the social construction of the Basque Country
The social construction of the Basque Country will be central theme of the management of the Government and represents our institutional response to the changes we are witnessing. We wish to build a social model of welfare that will be a referent in the State and in Europe.

Our aim is to realise the individual rights of everyone to pursue an independent life style.
This does not involve hiding behind the charity of passive policies that involve converting social marginalisation into a chronic problem, but developing an active strategy that will allow everyone to exercise their right to integrate into society.

Precisely because the new Social State is based on the autonomy of the individual, it also recognises the values and realities of the business economy as the best alternative for facing economic problems in an open society.
Building the Social State means that its economic bases must be built by means of a competitive and innovative system, but based, at all times, on the principle that individuals are more important than market considerations. The very social dimension of the individual confers upon him or her the right to a decent living and this right is exercised through access to a job, education, health, housing and social protection.

I will now deal with the economic bases of our strategy and then return to the issue of social dimension and solidarity.

IV.4 A) First basic object: The creation of wealth, innovation and sustainable growth

The Basque Country has seen a considerable recovery and extension of its entrepreneurial spirit. The economy of a country is supported by the economy of its companies and its families. The favourable economic results of the Basque Country over recent decades show basically that these are the fruit of an endogenous effort which has taken the Basque economy to the top position in the State ranking regarding the creation of new companies.

We will continue to foster this dynamism which has allowed us to grow continuously at a faster rate than other neighbouring economies and to equal European income levels.
Our next challenge as a society is to attain the same levels of employment and technology as other European countries. We will treat these issues as a priority.

In this sense, we are going to intensify our policies to enhance the competitiveness of our companies, aimed at increasing innovation, training, the internationalisation of companies and the new investments designed to generate employment, with special emphasis on the commitment to small and medium size companies in line with the European Small Business Charter.

One of our major aims in the past has been to improve the competitiveness of our companies. This has been the basis for our economic growth and the creation of employment, and we will continue to foster efforts in this area in the future.
But nowadays, this does not just involve doing things well, but doing things better than the rest. Consequently, although the policies of this government are designed in accordance with long-term goals, the strategies we are going to apply will be innovative in order to adapt better to the challenges and demands of Basque society.

To start with, our ultimate aim to create wealth and employment is an objective designed with the conscious commitment to the concept of sustainable growth. Our horizon is to go much further than the mere application of environmental legislation. This involves making the environment an essential part of our economic and social policies to make the sustainability concept a fundamental criterion in urban development and all economic sectors: industry, agriculture, energy and transport.

If making growth sustainable requires the fostering of environmental policies, enabling growth "with guarantees" includes developing new strategies to suit the times we live in. A society that has reached the level of development enjoyed nowadays by Basque society, cannot continue planning its future in terms of the adoption of foreign technologies. It must face the challenge of innovation, quality and the creation of knowledge with determination.

Today, we propose the second major economic transformation of the Basque Country, based on three fundamental concepts: 1) the construction of the information and knowledge society, 2) making the Basque Country a referent within Europe for research and technology, 3) disseminating the principle of total quality as a way to manage organisations.

1) Over the last year and a half, we have made substantial progress in the project to build an information society for everyone, propitiating the necessary cultural changes, the accessibility of our citizens to Internet, the promotion of e-commerce and the businesses of the new economy, and increasing the offer of on-line services by the administration. The extension of these policies is to constitute one of our short-term priorities. We are going to involve everyone in society to make the Basque Country a reference model in the development of new information technologies in terms of the number of people connected to Internet, improvement in telecommunications infrastructures, training and promotion of relevant contents, by emulating the most advanced examples in northern Europe.

2) The second basic principle of this transformation is our science and technology policy. One of the great achievements of the past has been the creation of our own science and technology system. With the new 2001-2004 Science and Technology Plan provided with 600 million Euros, we have established the basis for creating synergy between the public and private sectors in order to be on a similar technological level with other European countries.

I have already referred to the development of the Statute, but I must make a brief reference here to the transfer of exclusive powers in scientific and technical research in co-ordination with the State granted to the Basque Government in article 10. 16 of the Statute. I should like all members of this House to share the urgent need to change this situation in order to promote our scientific and economic development more efficiently.

3) The third fundamental principle on which to base the new economic transformation of the Basque Country is the promotion of Total Quality and the Management of Knowledge.
After lifting the Basque Country to the third position in Europe with regard to the number of official certifications granted, we should like to continue along this line and make progress in the general application of the principles of Total Quality to businesses and all kinds of organisations.
To do this, efforts will be made to disseminate strategies designed to achieve excellence in management, based on the use of the capabilities of everyone in the organisation as a method to improve efficiency and generate innovation. Our aim is to make Quality a constant theme in our organisations and synonymous with the Basque Country abroad.

We want Basque society to be aware of the commitment of the Government to these three fundamental principles that are to provide the bases for the second transformation of the Basque economy. In this regard, the annual budgets of the Government will contain specific allocations intended to achieve our goals in Science, Technology and Innovation .

Likewise, the Economic Affairs Commission will meet on a quarterly basis in the presence of all the Ministers involved to monitor the level of compliance of the measures of the Government with the aims of this Section.

The Government will also promote the setting up of a Basque Science, Technology and Innovation Council in which both public institutions and private organisations will take part. I will preside over and promote this Council personally, in order to consolidate a Basque innovation system and to present to our society an annual balance of the level of progress achieved in the objectives set in our process of transformation and technological convergence with Europe.

The challenge of innovation represents a critical factor in our economic growth and a fundamental principle to maintain and enhance our social welfare system.

Innovation must be placed at the service of individuals because, over and above policies and budgets, people are the fundamental issue required to make this second economic transformation of the Basque Country a reality and to continue growing above the economies of our environment. Individuals are the fundamental invention of the twenty-first century. Individuals and their education are the fundamental asset of a people.

Individuals, therefore, Basque men and women, will receive our priority attention and will be the priority targets of the second phase of activities I have referred to for the construction of a more just, integrated and supportive society.

IV. 4. B) Second basic objective: Cohesion, equality and social integration
Education is the most important asset that enables individuals to realise their potential and is the basis for the success of a country.
For this reason, our first priority is to guarantee maximum quality in the levels of formal education and ensure that vocational and university training also have sufficient resources. Beyond that, the challenge is to make permanent learning accessible to everyone throughout their lives, both with regard to their work and in their private lives.

- In the field of formal education, it is impossible to summarise here the strategies designed to comply with these objectives and so I will mention just a few of these: promote the autonomy of education centres, consolidate essential and instrumental subjects, promote teacher training, foster the teaching of values, trilinguism and the new technologies, apply the European quality model in teaching centres and increase the funds available for the system of scholarships in order to remove any kind of economic barrier to the education of all individuals.

- With regard to formal, continuous and occupational vocational training, we will continue developing and applying the Basque Vocational Training Plan. Our aim is to raise the percentage of vocational training of secondary education students from 43 to 50%. With respect to continuous training, it should be recognised that this training must be funded in the Basque Country via Hobetuz (Foundation for continuous professional training) and on the basis of the training quotas paid in virtue of our specific financing system. Likewise, we will continue to promote a model based on the personalised design of occupational training and job placements via the Basque Professional Guidance System.
- With regard to university teaching, we will intensify the application of decentralisation and autonomy criteria, encouraging the flexibility and optimisation of resources, as well as the assessment of results. Our firm commitment to the university will take the form of an increase in the financing in terms of GDP in order to increase quality and make Basque university education an obligatory reference model in the State and in Europe.

The advanced model of Social State that we wish to develop seeks to provide basic services of a universal nature as a guarantee that the best expression of equality is the inclusion of all members of society.

This is the case of our health service which has reached high standards of quality and we propose to continue improving this under the principles of universality, solidarity and equity, making every individual the centre of the system.

The new Health Plan will promote the strategy of total quality, reducing waiting lists, improving information and the treatment of patients and increasing their satisfaction with the service.

On the other hand, in view of the growing increase in the number of elderly dependent persons who demand social-health services, the co-ordination of efforts will be intensified through an Inter-institutional Plan which will deal with the problems of persons with senile dementia and chronic pathologies, optimising resources and encouraging the collaboration of non profit organisations.

The co-ordination of sectoral policies and the design of global measures must be the common factor of all the policies that aim to fight against social exclusion and poverty.
For this reason, we are going to redesign our social policy in order to remove sectoral obstacles - housing, education, health, employment - that cause exclusion, and alleviate their consequences, integrating in this way our active and passive sectoral welfare policies to achieve the social integration of the less favoured.

During the last legislature, as a result of the debate on the Social Charter and based on the other modifications made in social issues, we made great progress in avoiding the exclusion of persons for purely economic motives, by increasing benefits by 46%, recognising the basic income as a percentage of the minimum inter-professional salary and opening this to persons of over sixty-five years of age.

Our aim in this legislature is to gradually adapt and increase the basic income so that it guarantees a decent life for persons who have the right to claim this. However, the basic income must be set up as a right that entails the responsibility of beneficiaries to participate actively in the plans and system designed to allow these persons access to the job market. Within the framework of the Euskadi 2000Tres initiative, the human resources of our basic social services were enhanced and the door was opened to experiments in social work and training under the auspices of the AUZOLAN programme.

It is necessary to go on making even more improvements to these active aspects of the job creation policy and to do this through an organisational model that integrates several segments of the welfare system, guaranteeing the necessary inter-institutional co-ordination and applying a planning model to assess the real results in terms of the creation of new jobs.

In this sense, our set of employment policies will in fact be directed towards the less favoured, including not only excluded groups, but also the long-term unemployed, the elderly, women, immigrants and the young.

Special consideration will be given to less favoured areas. Sectoral policies, as in the case of social welfare policies, housing, economic promotion will continue to give special treatment to these less favoured areas. Moreover, the huge step forward in the form of the IZARTU programme, will be developed in new areas, once the results of this initiative have been evaluated, so that local entities can continue promoting overall revitalisation measures, adjusted to the needs of municipalities and disfavoured areas.

Housing is one of the essential sectoral policies required for promoting equality and solidarity. In this regard, we are determined to increase the offer of government-protected housing and provide these with their own legal framework, accentuating at the same time the social aspects of the promotion of government-protected housing, by fostering the availability of rented accommodation and co-ordinating measures with social integration policies.

I should like to make a brief reference to justice as an essential public service of the Social State. The right to the protection of the law would be better guaranteed were Justice to be decentralised and better adapted to the social situation of the Basque Country. Until a reformation of Justice and Judicial Power is possible in that direction, the Government will continue its programme to improve the means available to the administration, which has already attained tangible results. During this legislature, our law court construction plan will be completed, the third computerisation programme will be undertaken and the Judicial Office will the structured in accordance with criteria of rationality, expeditiousness and efficiency.

The commitment to the construction of a society is, ultimately, a commitment to equality in terms of inclusion and integration, and the policies designed to protect society are aimed not only at situations of exclusion, but also the specific problems of certain groups. I have referred beforehand to the care of elderly dependent persons. Now I should like to deal with policies to support the family, equality between men and women, young people and the immigration population.

- The Inter-institutional family support plan, which was approved recently and which will be put into motion during the next legislature, is a reflection of our wish to make progress in equality-related issues, and aims to remove the economic, social and labour obstacles to enable families to have as many children as they wish. In line with the success of previous plans in other countries, a set of measures will be put into motion: tax benefits, nurseries, aid for large families, creating and awareness of certain values, equality of opportunity, that will help to make employment compatible with maternity and paternity and place families with children in a position of equality.

The Basque Parliament will also pass the Law to govern the rights and duties of common law couples in order to make progress in giving them equal status to married couples.

- The policy of equality between men and women is a priority aim of this Government.
The Basque Country must be constructed by everyone, men and women, under conditions of equality. If we want to build a modern society for this new century, it is necessary to eradicate, once and for all, any kind of discrimination between men and women. We must achieve the effective integration of women in all sectors of Basque society. To do this, we must involve everyone, not only women, but especially men. We men must accept our responsibility in this process of awareness and social adaptation. We may have to be self-critical and rethink the concept of masculinity because if we do not do that, the process of social integration will not develop naturally, but will provoke unnecessary conflicts.

Our future, the future of Basque society, will depend upon everyone, men and women, being able to share all our tasks and duties in life.

As President of the Basque Government, I have made, and will continue doing so, a personal and direct undertaking to achieve this aim, and this Government will take any measures that may be needed to do this.

For this reason, in addition to foster the positive action plans that have been put into motion through Emakunde, a Basque Law for Equality will be presented for approval during this legislature, providing the means for the integration of women in all walks of life - political, social, cultural and labour.

I am convinced that with the effective incorporation of women in all areas of our society, things will change for the better in our society. We are faced with the great changes of the twenty-first century and my assertion is that Basque society and especially Basque men, will play a prominent role in this process.

- Policies involving young people will also be a priority for the Government and, therefore, special attention will be given to favouring their integration into society and avoiding the hazards typical of adolescents. The Government will put into motion, in collaboration with the other Basque institutions, the second Young Persons' Plan, which will allow the development of an overall strategy of support for young people, comprising leisure, education and work, including a specific focus on problems of health and access to housing. With regard to housing, special emphasis will be given to the promotion of rented accommodation, as it is understood that in addition to access to the job market, this is a factor which is delaying the development of an independent life for many young people
The key issue in the policy for young people will be, more and more, to take their own wishes into consideration. This is what has been learnt in the past and will be the great challenge for the future.
- Likewise, a specific immigration plan will be drawn up aimed at guaranteeing the human rights of a immigrant populations, which will include co-ordinated measures in issues such as education, culture, health, social assistance and employment.
We are faced with the huge challenge of integrating persons who are simply looking for a place to work and live, just like us, Basque men and women have had to look, so many times in our history.

Culture is the final link in the chain of policies that must make up the Social State. Its importance is extraordinary, both for its contribution to individual advancement and the cohesion of the Basque territories, and for its role of promoting the economic development of advanced societies. The promotion of culture is an option that will be maintained throughout this legislature through the preparation of the Basque Culture Plan, which takes the form of the development of infrastructures, technological modernisation and support for creative activities and cultural industries.

The Basque language, the heritage of Basque culture, represents a thousand-year-old legacy that has been handed down by one generation to another.
The Basque language belongs to everyone and requires everyone's support.
Basque society as a whole is responsible for keeping it alive as an instrument of communication and relationship, and the Government is obliged to place at the disposal of every individual the mechanisms of positive discrimination in order to construct a truly bilingual society.

In this period of democracy, in which the co-official status of the Basque language is recognised together with Spanish, we have initiated, at least in the Autonomous Community of the Basque Country, a policy to promote and encourage Basque, the weaker of the two languages, with the maximum respect and agreement at all times among the political parties, trade unions, teachers, civil servants and public figures and entities that work in favour of Basque. A sign of an advanced society is one that adapts measures in favour of the weakest so as not to abandon them to a marginal existence. Just like Spanish, Basque may represent an obstacle on occasions for some. However, we have made every attempt to avoid or alleviate these situations by acting without imposition, with flexibility and adapting ourselves to different socio-linguistic situations. This is the way we have done things up to now and in the future we will continue to apply the same criteria.
However, this incipient process is still far from ensuring the survival and use of Basque as a language that responds adequately to the needs of modern Basque society.

In this regard, we will continue our commitment to promoting Basque in all areas through a linguistic policy appropriate to the socio-linguistic situation of the Basque Country, so that everyone may exercise their individual right to use either of the official languages of our Community.

_ _ _ _ _ _ _ _ _ _ _ _

Up to this point I have mentioned some of the most salient aspects of the policy of my Government both in order to create wealth and innovation and to achieve social cohesion and integration.

I should like to dedicate the last part of my address to two issues which seem to me of vital importance and have a transversal influence on the aspects I have just mentioned. I refer to projecting the image of the Basque Country abroad and the efficient management of public resources.

Projecting the image of the Basque Country abroad.
The social construction of the Basque Country not only has an internal dimension but an external dimension as well.
We do not wish to made the Basque Country an isolated country, closed in upon itself, but open to the world.

We wish to form part of a globalised world, more and more interdependent, accepting the ideas of others, but contributing our own individuality.
For this reason, our external policy must provide the Basque Country with a "face for the world", promoting the defence of our interests and the positive image of our traditional values.
To achieve this, an overall external policy must be developed for the Basque Country which includes all the institutions and different areas in which its has autonomous powers. In short, this involves changing from a mere knowledge of our existence to the international recognition of the Basque Country as a forward-looking country, with its own personality and identity.

In order to meet this objective, the presence of the Basque Country in those decision-making forums in the European Union in which the interests of the Basque people are at stake, seems to me to be a fundamental requirement. This does not involve a nationalist approach, because as other States of the European Union have shown, it is absolutely normal for regions with their own identity to participate directly in the organisations of the European Community.

Likewise, we consider it to be in our fundamental interests to develop an active policy of cross-border co-operation, following the guidelines and positive experiences applied to this area within the European Union itself.

It is necessary to provide the instruments that will allow us to tell the outside world about the real situation in the Basque Country. In this sense, and as was done with the Brussels Delegation, we are going to promote our direct presence in Madrid with the opening of our own delegation, as well as in those places and countries where it is appropriate to defend and promote the economic, cultural and institutional interests of our Community.

These delegations will represent those existing or newly-created institutes and organisations involved in the cultural, economic and institutional promotion of the Basque Country abroad. These will include the Basque Country Institute recently set up to promote Basque language and culture and to provide news about the Basque Country to speakers of our language throughout the world.

The efficient management of resources as an instrument for government
Up to this point I have described the aims that will lead us to the construction of an ambitious and advanced model of Social State. Now is the moment to speak about the means and the tools. In other words, now is the time to talk about the resources of the administration and the instrumentation of policies.
The first consideration in this regard is of a legal nature. The most immediate task of the Government, together with the Provincial Councils will be to negotiate a new Economic Accord.

The principles that, in our view, must guide the new Accord are as follows: unlimited duration, consolidation, development and intensification of the capacity of regulations, the agreement of new taxes, adaptation of any points connection that may be required, the continuity of the financial model, non judicial procedures of arbitration and resolution of conflicts and the incorporation of the Institute within the framework of Europe. I believe that these are reasonable suppositions that will gain the general support of the House.

With regard to fiscal policy, we will continue developing our tax system under the principles of equity, sufficiency, neutrality, efficiency and co-ordination between the Provincial and Common Institutions, both from the point of view of regulations and the fight against tax fraud.

I must say clearly in this sense that taxes are instruments and as such, must be at the service of the economic and social needs of the Basque Country.

Our commitment to the construction of a Basque society is serious and in order to make this even firmer, if possible, we are going to analyse the set of policies proposed by integrating these in the overall design of the Basque public sector. A design which comply in all cases with the European guidelines of the Stability and Growth Agreement, aimed at attaining budgetary equilibrium, but without excluding the possibility of deficits or surpluses when the economic situation or social requirements make this advisable.
In this sense, I must express my total disagreement with the Stability Law white paper of the Central Government, which has totally distorted the European ideal, speaking of equilibrium or surplus every year, while the Union speaks of equilibrium in the mid term and since the infamous LOAPA (Organic Law for the Harmonisation of the Autonomic Process), and has meant a greater threat to our self-government and its efficient operation.

With regard to our administration, I believe that the challenges which we will have to face can be summed up in two expressions that come for the Anglo-Saxon world: in the first case, devolution, understood as the systematic application of the principle of the delegation of responsibility at all institutional levels, and in the second, reinvention, understood as the process to enhance and redesign the instruments of intervention aimed at obtaining more value for citizens with the same economic means.

Our devolution will include the recognition of a greater role at a local level through the passing of the Municipal Law, and the reformation of inter-institutional relations through a modification of the Law on Historical Territories. Devolution means, then, the redistribution of management areas to lower levels. But also, that the Common Institutions must strengthen their leadership capacity and planning to guarantee the co-ordinated operation of policies in which there is joint action. In this sense, the sectoral planning of public policies will be promoted by integrating the actions of the Government, the Provincial Councils and Town Halls, through the "Basque Council of Public Policies" set up as an inter-institutional participative organ.

Devolution and subsidiariety must also be applied to a European Union that needs to redefine its framework of activity, with transfer processes in both directions. As holders of many of the powers involved, we demand a direct participation and recognition of our autonomous government in the European Union.

The reinvention of the Government is a process which has already been initiated by the Commission for the Reformation of the Public Administration - CORAME - and of the measures included in the later Plan for the Modernisation of the Public Administration, which are currently in application. Measures which must be continued with even more dynamism, if possible, in the light of changes in the environment.

On the one hand, the impact of new technologies obliges us to provide new on-line services. On the other, change itself has an effect on human resources and requires flexibility and anticipation of requirements that will arise in the medium term. Our response to these challenges must be to accept with determination the challenge of on-line administration, something which has already been undertaken within the framework of the Euskadi in the Information Society Plan; and on the other, plan human resources and involve the entire organisation in the assessment of the services and quality management.

Conclusions:

Our project is inspired in the principles of a profound respect for the liberty of persons and the diversity of cultures, as is only right in the world of globalisation and multi-cultures.

We are and will be committed to the Basque Country's realisation of the level of self-government to which it aspires at each moment in time, but in the form of an open construction that results for a consensus based on individual liberties. I am convinced that the Basque Country will be what the citizens of this country want it to be and anyone who attempts to prevent this will simply be applying again, the rule of force and the right of conquest, instead of the force of reason and the right to the free democratic decision.

In The Open Society and its Enemies, Karl Popper said that:
"When a conflict arises, this means that the most constructive passions and emotions that may have helped to overcome this in principle, respect, love, devotion to a common cause, etc, have shown themselves to be incapable of resolving the problem. There are only two solutions then, one is the use of emotions and finally of violence, the other is the use of reason, impartiality and reasonable commitment."

I have proposed an ethical undertaking in the defence of life and human rights in order to do away with violence. I have proposed dialogue as an instrument which is nothing more than a "non dogmatic use of reason". I have proposed a commitment to respect the decisions of the citizens of the Basque Country that is nothing more than the democratic expression of "impartiality and reasonable commitment".

And, finally, I have proposed a commitment to the social construction of the Basque Country, as a reference model in the State and Europe.

I have proposed, in short, an exciting, forward-looking project to make the Basque Country a place where it is worth while enjoying oneself, working and living.

I have proposed an achievable dream, which we must all contribute to making a reality.

Many thanks