Instead of uniting behind the fledgeling peace process, nationalist parties held separate ceremonies and appeared to share little common ground.

How the region marked the Aberri Eguna — National Day — was seen in Spain as an important test of the political will to end terrorist violence.

Meanwhile, the Spanish Government was said to be involved in talks to find a way to legalise Batasuna, the banned political wing of Eta.

The Spanish daily ABC said that Iñigo Iruín, the lawyer who has been involved in secret talks with Eta before, was acting as a go-between to explore how to allow Batasuna to stand in local elections next year. Its legalisation would be seen by the Right and victims’ groups as appeasing Eta too quickly.

The right-leaning paper reported that the Spanish Government was organising talks with José Antonio Urrutikoetxea Bengoetxea, the head of Eta.

Yesterday the separate celebrations by Basque nationalist parties were seen as a clinging to power. Last year local elections showed support for the nationalist cause was dwindling, with 58 per cent of Basques voting for the Basque Nationalist Party (PNV) and two left-wing parties, Eusko Alkartasuna (EA) and Aralar. In 1986, 68 per cent voted for the nationalist cause.

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