Speculation persisted today that the Basque government could call early elections to revive its stalled plan for virtual independence, as Spain's prime minister came under fire for offering the Basques a compromise.
Basque premier Mr Juan Jose Ibarretxe's plan for "free association" with Spain was crushingly rejected by the Spanish parliament yesterday, but he defiantly vowed to push ahead with a referendum if armed separatists ETA end their violence.
Socialist leader Mr Zapatero, hamstrung by his 10-month-old government's reliance on small regional parties, adopted a conciliatory tone at the debate, holding out the prospect of more autonomy from Madrid.
"Congress rejects the 'Ibarretxe plan' but Zapatero gives wings to the nationalists," said right-leaning paper El Mundo, blasting the Socialists for opening a Pandora's box of demands for more autonomy from Spain's powerful regions.
Mr Ibarretxe called an emergency meeting of the Basque government on Wednesday to discuss the rejection of his plan, amid speculation he would bring forward elections due for May.
"In the coming hours and days many things will be clarified and important decisions will be taken," Mr Juan Maria Atutxa, president of the Basque parliament, told regional radio.
"This has only just begun and we have a lot of stages before us." A referendum would only be held after the regional poll if Mr Ibarretxe is re-elected, nationalist politicians say.