Paper presented at the Conference ‘The War on Terror - Three Years On’, Royal Irish Academy, Dublin, 26 November 2004. Published in: Irish Studies in International Affairs, Vol. 16: 65-72, 2005The terrorist attack perpetrated on March 11, 2004 in Madrid received a great deal of attention in the international media. Among other impacts, it dramatically brought people’s memories back to the events of September 11, 2001 in New York. This time over 200 people were killed as a consequence of the railway bombings. The victims were mostly workers and students who were commuting from their towns of residence around Madrid to the Spanish capital city. Many analyses have focussed on the international implications of the Madrid massacre. This presentation reflects on some of the consequences the attack has had for both Spanish national and regional politics, with a special reference to the long-standing conflict in the Basque Country. In the first section, an examination is carried out on the apparent direct influence the attack had in the outcome of Spanish General Election held on March 14, 2004 --and which meant the electoral defeat of the government party (Partido Popular, PP) by the main opposition party (Partido Socialista Obrero Español, PSOE). After reviewing developments in the general process of regional decentralization in Spain, the final section of this paper concentrates in the situation in the Basque Country, where the action of the terrorist ETA highly conditions future political scenarios.Peer reviewed