1.- Basque society demands a solution.

Basque society is expectant. It is looking to us. It expects solutions from its political representatives. As Lehendakari (President), I, and my Government, are not prepared to let them down.
We do not resign ourselves to the blind alley offered by ETA. A pathway of hatred and frustration. A road to nowhere. Neither do we resign ourselves to the resistance to change, the obstructionism and constant refusal of the Partido Popular (Popular Party) and the Partido Socialista Obrero Español (Spanish Socialist Party) to provide solutions. Because it is a road that diverts us away from peace and generates social tension.

Basque society does not want to reproduce sterile debates about the past, nor does it wish to be drawn into a permanent situation of confrontation and social division. Basque society is tired of violence. It is tired of impositions and blackmail. It is tired of negative messages. It is not true that we are an "immature society", as some described us with malice after the last elections. We are a sensible and ancient people with enough wisdom to control our own destiny. Basque society demands a solution to its problems. It wants to look forward to the future without renouncing the past. It wants to make progress.

The need for a new Political Agreement with the Spanish State as the key to a draft solution.

In order to respond to this expectation, a new political agreement must be drawn up, one which adapts our framework of self-government to the current wishes of the majority of Basques, and uses the instruments and possibilities envisaged in the Gernika Statute. This is the forward-looking strategic plan and draft solution designed to provide a solution to this conflict, which, as Lehendakari, I wish to propose to Basque society.
This does not mean that we must renounce the past nor underestimate the level of well-being attained thanks to the efficient management of the powers assumed through the Statute currently in force.
It involves constructing a new plan of coexistence based on the principles of free association and shared sovereignty and not on a strategy of subordination and the imposition of a particular view of the State, which ignores the wishes of the Basque Country.
Because, as I have already expressed publicly to this House, we must accept once and for all, that the problem of political normalisation does not lie in resolving the question of who must exercise which powers. The solution to the problem of political normalisation lies in accepting that the Basque Country is not a subordinate part of the Spanish State but a People with its own identity, with the capacity to establish their own framework of internal relations and to form part of a truly plurinational state under the terms of free association.

In spite of the interest of certain sectors to place a muffler on a number of democratic decisions of Basque society, the unavoidable truth is that these have been taken democratically, and looking the other way will do nothing to resolve the inexorable problem of political normalisation and coexistence.

It is also a fact that on February 15 1990, by an absolute majority of 38 votes, and without the support of Herri Batasuna, the Basque Parliament proclaimed: "the Basque People have the right to self-determination. This right resides in the lawful authority of its citizens to take decisions, freely and democratically, on their political, economic, social and cultural status, either by providing themselves with their own political framework or by sharing their sovereignty, totally or in part, with other peoples".
And the unavoidable truth is that at the last regional elections, where there was an eighty-per-cent turnout at the polling booths in the Basque Autonomous Community, the majority of the inhabitants of this community ratified a programme which defended the right of Basque society to be consulted in order to decide its own future.
The truth is that on July 12, the Basque Parliament passed a motion to develop the possibilities envisaged in the current Statute and to commence the preparation of a new political agreement with the State which responds to the aspirations of the majority of Basque society, expressed freely and democratically.
This is the harsh reality and ignoring it is not only an act of political irresponsibility but a denial of the legitimate wishes and aspirations of the majority of Basque society which wants to make progress in the search for peaceful coexistence.

It is necessary, therefore, to face reality and propose a new political agreement capable of expressing and accepting the democratic will of Basque society.
As you are aware, at the plenary session held on October 25, I spoke of the need to develop the options envisaged in the Statute to achieve a new agreement, a new, common ground for coexistence. I put forward the principles and basis of the project on which, in my opinion, this new Agreement should be drawn up. I did so by making an open proposal, as a contribution to a debate which, in my view, should be conducted by a Self-government Commission set up for this purpose.

You are familiar with the rest of the story because you have taken an active part in the exhaustive work of that Parliamentary Commission over a period of six months. As a result of this work, a report was approved at the plenary session of the House on July 12, ratifying all the basic issues proposed on October 21 2001.
In this sense, I wish to convey to the public opinion of the Basque Country and Spain that I, the Lehendakari, and the three parties that make up the Basque Government, are firmly resolved to continue making progress with our proposal. We are going to see it through to the end because we are convinced that it represents the majority wishes of Basque society.
The doors of the process will be permanently open to the participation of representatives of all the political sensibilities in Basque society but, I declare that from now on, we are not going to allow the right to veto to prevent us from advancing in this direction.

It is necessary to make a start, but if we have to set out on this journey alone we will do it, because we consider that we have sufficient political strength and the support of Basque society. In the end, it will be Basque society itself that ratifies, praises or punishes the validity of the result obtained.
I wish to make a personal contribution to finding a solution. To do so, on the occasion of this General Policy Debate, I wish to take a number of important new steps in this direction. Firstly, I am going to describe the contents of the proposal for a new Agreement for Coexistence.
Secondly, I am going to set out the basic milestones in the process to be followed for the development and materialisation of the Agreement.

2.- The project: A new status of free association with the Spanish state to initiate a new phase in our relations.

2.1 The basic premises of this project:

The aim is to reach an agreement for coexistence based on the recognition of the right of the Basque People to be consulted in order to decide their own future. This agreement is supported by three basic premises:

a) The Basques are a People with their own identity…
b) that they have the right to decide their own future…
c) based on a respect for the decisions of the inhabitants of the different legal-political spheres in which they are situated.

a) A People with their own identity

The Basques are a people with their own identity and a member of the community of European Peoples. The Basque People boast a singular historic, social and cultural heritage, that belongs in equal measure to the citizens of the provinces of Alava, Bizkaia, Gipuzkoa, Navarra, Lapurdi, Zuberoa and Benafarroa, located on both sides of the Pyrenees.
The geographical area in which the Basque People have lived throughout their history has been known under different names, such as Vasconia, the Kingdom of Navarre, Euskalherria, País Vasco-Navarro, Euskadi and the Basque Country.
At present, the Basque People are organised in three legal-administrative communities. On the one hand, the Basque Autonomous Community - made up of the provinces of Alava, Bizkaia and Gipuzkoa- and the Province of Navarre, both of which are situated within the Spanish State. And, on the other hand, the territories of Iparralde -Lapurdi, Zuberoa and Benafarroa- are situated within the French state and do not have their own political administration.
At no time during their history have the Basque People been considered to be an exclusive entity - no one has ever been excluded, now or in the past, from belonging to this if he so wishes - but as a living social reality, the result of individual and voluntary self-identification with a feeling of Basque identity which, in many cases, is also compatible with the feeling of belonging to other nations or states.
This feeling of belonging to the Basque People goes beyond legal regulations or political boundaries. Because feelings of national identity cannot be imposed, nor can they be forbidden by any decree, law or constitution. As is stated expressly in the Human Rights Charter, the right of every individual to express any feeling of belonging and identity they want, must be accepted as totally natural.

b) … Who have the right to decide their own future

The right of Basque People to be consulted in order to decide their own future, was passed by this Parliament by absolute majority in 1990, and in accordance with the internationally-recognised right of Peoples to self-determination, expressed, among others, in article 1 of the International Agreement of Civil and Political Rights and the International Agreement of Economic, Social and Cultural Rights: "All Peoples have the right to free determination and in virtue of this right, to freely establish their own political organisation and provide for their economic, social and cultural development."
Moreover, these agreements have been incorporated into the body of constitutional legislation of the Spanish State by means of the ratification instrument of April 13 1977.

c) ... Based on a respect for the decisions of the citizens of the different legal-political spheres in which they are situated.

The exercise of the right of the Basque People to decide their own future is based on a scrupulous respect for the right of the citizens of the different legal-political spheres in which they are situated, to be consulted in order to decide their own future. In other words, this implies a respect for the decisions of the citizens of the Basque Autonomous Community, the decisions of the citizens of the Community of Navarre, as well as the decisions of the citizens of Iparralde (the French Basque Country), both to establish any internal relations they might wish to establish between them and any links they may wish to maintain with the States in which they are located.

2.2 The Proposal and its contents

- … In accordance with our right to make decisions as an integral part of the Basque People, i.e., the Basque Autonomous Community …
- … In virtue of our original sovereignty, recognised on the basis of the validity and modernisation of our pre-existing historical rights, explicitly provided for in the Constitution…
- … In accordance with the Additional Provision of the Gernika Statute and of the Agreement of the Basque Parliament of February 15 1990, proclaiming the Right to Self-determination of the Basque People…

we submit our proposal to the Spanish State for a new Political Agreement for coexistence, based on a recognition of our national identity and on free association with a plurinational state.
In short, as representatives of the Basque Autonomous Community which forms an integral part of the Basque People, and in the exercise of our capacity to decide, freely and democratically, our own future, we propose to initiate a new phase in our relationship with the Spanish State, based on a new status of free association.

The contents of the new Agreement

On the initial basis of the possibilities envisaged in the current system of autonomy established in the Gernika Statute, we propose a broadening of the basis of our self-government in the following terms:

1) The lawful recognition of our national identity and of our right to decide our own future.

The recognition of the right of the Basque People to be consulted in order to decide their own future, i.e., the framework of internal and external relations they may wish to have, based on a respect for the will of the different territorial and legal-political areas in which they are located.
In the Basque Autonomous Community, and in accordance with our right to decision as an integral part of the Basque People, we wish to exercise the right to decide our own future through the recognition of our capacity to regulate and administer democratically-conducted referendums to determine the opinion of Basque society.
Likewise, and in accordance with the plurinational nature of the Spanish State, we propose that Basque nationality, for anyone who may require this for legal, political and administrative purposes, be recognised in a totally natural manner.

2) Freedom for the Provinces of the Basque Autonomous Community to establish any type of relationship with the Province of Navarre.

Freedom based on the right of the citizens of the Provinces of the Basque Autonomous Community (Alava, Bizkaia and Gipuzkoa) and the citizens of the Community of Navarre, to establish any political links and internal relations that they may consider to be most appropriate for their development and political, social, economic and cultural well-being, restricted only by the extent of their own wishes.
I want to make it clear, once and for all, that only the inhabitants of Navarre have the right to decide their own future. Based on this principle of respect, no one can impose or obstruct the channels and instruments that the Basque Autonomous Community and the Province of Navarre may freely decide to establish between them.

3) The right to establish relations with the Basque Provinces in Iparralde, located within the French state

We propose to broaden the framework of relations between the Basque Provinces located on both sides of the Pyrenees in order to strengthen the special historical, social and cultural ties with the Provinces of Iparralde, located in the French State. To do this, we propose the most wide-ranging and flexible use of Community regulations and of treaties that enable forms of cross-border cooperation between regions belonging to different states of the European Union.

4) Constitution of an autonomous Basque judiciary

A judiciary which, together with the legislature and executive, make up the three powers of our self-government. This means a judiciary which has total judicial autonomy in the Basque Country, and the State is replaced in the administration of justice in our Community, limited only by the application of the same procedural principles adopted in the Spanish State, within a framework of coordination and cooperation at a state and European level.

5) Guarantee the political institutionalisation of the Basque Country

This implies total freedom in designing the institutions of political self-government. It affects the exclusive powers of self-organisation, public safety, provincial and local administration and private law in matters relating to neighbourhoods, the family, hereditary issues, business and civil society.

6) Preserve our cultural identity

By developing an autonomous public policy which allows us to keep the marks of cultural identity throughout the educational system. This involves exclusive powers in the areas of culture, language and education and also exclusive powers in major aspects such as the representation of cultural activities and the participation of national teams selected by any of the Basque sports federations who might wish to compete at an international level.

7) Develop our own system of labour relations, economic and social protection legislation

This includes the autonomous management of our own economic policy, tax and fiscal system and labour relations systems, as well as those relating to insurance, welfare and social security, by establishing the necessary mechanisms of solidarity and cooperation with the Spanish State and Europe.

8) Guarantee the management of our natural resources and infrastructures

This involves exclusive powers in the Basque Country for public policies of environmental sustainability, land use, the ownership of natural resources and all communications infrastructures.

9) The establishment of a bilateral system of guarantees with the Spanish State to prevent the unilateral modification of the Agreement

If we are dealing with an Agreement and a model of co-sovereignty, freely and voluntarily shared, it is necessary to establish a mutual system of guarantees to prevent the restriction, modification or unilateral interpretation of any agreement.
For this purpose, several formulas may be considered in accordance with the type and nature of the powers assumed.
For public policies adopted exclusively in the Basque Country, any external legal regulations that might affect these will be applicable in the Basque Country only after ratification by the Basque Parliament.
In all other issues, it will be necessary to establish conciliatory bodies and regulations to resolve conflicts in a peaceful and democratic manner.

10) The power to act in our own right in Europe and the world

The Basque Country has formed part of Europe since the dawn of time and today, the European Union is configured as a space in which the future social, economic, political and cultural relations between Basque institutions and the institutions of Spain and Europe should take shape.
Fortunately, in Europe, conflicts which are yet to be resolved in the Spanish State have been overcome socially and intellectually. Fundamental aspects and democratic principles such as free association, the democratic right of peoples to take their own decisions, shared sovereignty, cross-border cooperation and a respect for the identities of stateless nations, are accepted as the norm in Europe and the Spanish State should look to these procedures for guidance.

The Institutions of the Basque Autonomous Community wish to have a direct presence in European Institutions in defence of our exclusive powers and in representation of our own identity. We do not propose anything which is not already envisaged in the Treaty of the European Union, as shown by the presence and major role played by a large number of regions and nations who even chair its meetings.
In this regard, we propose to base our relationship with Europe according to an "associated region or nation status", an advanced formula of participation which at this time the European Convention itself is analysing with a view to the remodelling of the treaties of the Union for the year 2004. In other words, our specificity and that of other European nations must be referred to expressly in the new European constitution.

Likewise, and in accordance with the broadest application of international law, we wish to have a presence in our own right on the world stage and in international organisations, as well as the power to sign international treaties to promote our economic, cultural and institutional interests, in the defence of our identity as a People.

2.3 The Instruments:

For a great many Basques, the "Fueros" or Historical Rights of the Basque Country continue to be our true constitution.
In all cases, if there is political will, if there is a wish to resolve the so-called Basque problem, if there is a wish to create a true plan for political normalisation and coexistence, the current body of legislation contains procedures and instruments that are perfectly applicable to our own case.
This procedure is provided for in article 46 of the Gernika Statute, and its instruments are as follows:

- Additional Provision of the Gernika Statute
"The acceptance of the system of self-rule established in this Statute does not imply any waiver by the Basque Country of any historical rights it may have had in the past, and these may be brought up to date in accordance with the stipulations of the legal code"

- First Additional Provision.
"The Constitution safeguards and respects the historical rights of the Basque provinces. The general modernisation of this system of special rights will be carried out within the framework of the Constitution and the Statutes of Autonomy".

- The second Repeal Provision of the Constitution.
"To the extent that this may maintain a certain level of validity, the Royal Decree of October 25 1839 is considered to be definitively abolished as far as this affects Alava, Gipuzkoa and Bizkaia.
Law 21 of July 1876 shall be considered to be definitively abolished in the same terms".

- The International Agreement on Civil and Political Rights of December 19 1966.
Ratified by the Kingdom of Spain by means of the ratification instrument of April 13 1977 and published in the Official Gazette, issue 103 of April 30 1997.

- The International Agreement on Economic, Social and Cultural rights of December 19 1966.
Ratified by the Kingdom of Spain by means of the ratification instrument of April 13 1977 and published in the Official Gazette, issue 103 of April 30 1997.

- The democratic legitimacy of the will of Basque society expressed in a referendum and formulated by its representative institutions.

If we recognise the existence of a political problem, we must find a political and commonly-agreed solution. It is not true that we have a legal problem, it is a problem of political and democratic will.
The new model of relationship we propose fits perfectly within the open and flexible interpretation of the Constitution based on the plurinationality of the Spanish State, as defended by Spanish experts on constitutional matters.
Moreover, this model is not intended to be the exclusive right of the Basque Country. It might easily be a model for the relations of other countries and nationalities in the Spanish State, based on a conception of the state as an asymmetric federal structure, defended by leading representatives of the Socialist Party and, of course, based on a conception of federalism of free association defended by the Izquierda Unida (United Left) party.
But it does not stop there, this relationship model based on free association and shared sovereignty, is used and recognised in Europe and in international agreements. This model has represented the basis for the construction of Europe itself and it has even been the basis for the foundation of European States and of other states in the western world.
In short, this involves a proposal that uses the legal and political bases that have been used in Western Europe, now and in the past, to resolve, pacifically and democratically, conflicts deriving from the existence of different nationality groups within the same state or conflicts of relationship that arise between national groups belonging to different states.

We are faced with one of the major issues that the world must tackle in the twenty-first century, i.e., how to cater for the status of nations from a legal, social and political viewpoint. How to respect the personality of nations that are not states. How to channel their presence, their rights and concerns. How to establish a framework of relationships in the face of the new world order that cannot be based on the elimination of the marks of identity and on imposition, but on respect and free association.
This is also the challenge we must face. Our coexistence in the future will depend on our capacity to tackle these issues through a process of dialogue.

3.- The process: A road that ends in a respect for the democratic will of Basque society

3.1 The fundamental issues

I wish to announce formally that this General Policy Debate marks the beginning of a course of action that will conclude with a new political agreement for coexistence, articulated by means of an open, flexible, legal and democratic process.

a) "Openness".

The process will not be circumscribed strictly to the realm of political representation but open to the participation of society as a whole. This principal of openness implies non-exclusion, i.e., the free participation of any of the political social groups present in Basque society who may wish to do so.

The process will be free of any kind of exclusivity. The principle of non-exclusion will govern each of its stages, but the non veto principle will also operate. We will not accept obstructionist tactics.

b) "Flexibility".

The process will be approached in terms of flexibility, without prejudging the final result and taking into consideration the contributions of different social and political groups that may join the process at different phases.

c) "Legality".

The procedures set out in the statutory and constitutional regulations in force will be adhered to.
In particular, in the Basque Autonomous Community, the legal reform procedure set out in article 46 of the Statute of Autonomy will be adopted.

d) "Democracy".

The definitive ratification of the project will be made in accordance with the democratic majority of Basque society, by means of a referendum.
This final ratification process must be conducted under adequate conditions so that Basque society may express itself freely in a scenario free of violence and without exclusions.

3.2 The Phases

Having established the principles or fundamental issues that are to govern the development of the open process, I am going to propose the different stages and undertakings that, in my opinion, must be used as guidelines in order to achieve the aims set out for this.

Presentation and initiation of the process:

As I have indicated, I wish to announce formally the commencement of the process to reach a new political agreement with the State. This General Policy debate marks the official opening of the process.
In this regard, I wish to tell you that it is my intention to start bilateral meetings next week with all political forces and sensibilities in this House, to invite them personally to take part in this open process and to determine their willingness to work or participate in its initial stage or subsequent phases.
During this initial stage, I will also provide a personal explanation of the basic issues of the project and the process to business and union representatives and to the social and cultural organisations of the Basque Country .

Social participation

Once this initial stage consisting of the bilateral presentation of our proposal to political groups and economic, social and cultural agents, has been completed, we will commence the process of informing Basque society. Basque society has the right to know, participate and express its opinion about the basic issues and principles of this draft solution. We want to gather the opinion and contributions of society itself in order to include these in our own reflections.

Preparation and presentation of a draft articulated text.

In the exercise of its responsibility and of the powers granted to it in the Gernika Statute, the Government undertakes to draw up and present, with a maximum period of twelve months, a draft articulated text, drawn up in accordance with the basic issues passed by this House, and taking into consideration any social and political contributions that may have been made during this period.

Consultation at a political and social level and negotiation with the State.

Based on this initial draft document, a new process of consultation at a political and social level will be initiated with the aim of drawing up a definitive proposal.
This proposal will be disseminated among Basque society before referring it to the Basque Parliament, in accordance with the procedure outlined in the Gernika Statute. After this, the procedures required to negotiate and reach agreements with the Spanish State will be initiated.

The final ratification of the political Agreement with the State, or, if appropriate, of the project passed by the Basque Parliament, will be made by means of a referendum, in a scenario free of violence and without exclusions.