Publicado en: A. Guelke, ed., Democracy and Ethnic Conflict, 29-51, Basingstoke: Palgrave MacMillan, 2004.Territorial politics in Spain can be regarded as the expression of a mode of multiple ethnoterritorial concurrence, which relates sub-state mobilisation with the interplay among central institutions and regions, or Comunidades Autónomas (Moreno, 1995). The ‘historical nationality’ of the Basque Country has recently witnessed an increase in political terrorism carried out by ETA, as evidenced by party sectarian assassinations and actions throughout Spain. This course of action has further encouraged a division between Basque nationalists and autonomists regarding proposals to eradicate political violence. This paper briefly analyses relevant historical events in contemporary Basque Country with the purpose of framing the nature of the present political conflict. It reflects on recent developments that were triggered after the signing by the nationalist parties of the Pacto de Lizarra on September 12, 1998. It also examines the results of the latest Basque Elections held on May 13, 2001 and explores the future prospects for ending terrorism.Peer reviewed