ABSTRACT
Chapter 4 investigates why the Basque Nationalist Party postponed its ambition to seek a new fit for the Basque Country within Spain based on shared sovereignty following its return to power at regional level in 2012, and the consequences for wider Spanish politics. The decision corresponded in part to the need to address the economic impact of the 2008 financial crisis, but also to the need to secure broader cross-party support for a co-sovereignty proposal, which had not been forthcoming during the Ibarretxe period. Still working towards its goal at a slower pace, the Basque Nationalist Party reconceptualised the notion of co-sovereignty that it seeks to envisage a bilateral Political Agreement with Spain akin to the existing bilateral Economic Agreement. Yet, division continued not only between Basque nationalist and non-nationalist formations, but also within the Basque nationalist camp itself, following the reincorporation of the radical left-wing separatists into politics from 2011. The positives of the Economic Agreement from the Basque perspective have helped to contribute to the continued accommodation of the Basque Country within Spain, but the future evolution of Basque nationalist behaviour may also depend on how the multi-party context in Spain evolves, and whether or not it continues to give the mainstream Basque nationalists the opportunity to play the role of kingmaker in times of minority government.
