Basque nationalist party PNV wins Basque vote

Basque Country's Basque Nationalist Party PNV won a vote to the 75-seat Basque parliament edging clearly main rival Bildu and ousting the ruling Basque socialist party PSE.

With 99.76 per cent of the votes counted, PNV won 27 seats, six more than EH Bildu. Ruling party PSE won 16, and conservative party PP had 10. Minority party UPyD won one seat while Ezker Anitza and EB did not win any representation in the Basque chamber.

Tensions with Madrid

The outcome of the vote, as expected, was influenced by recent tensions between central government and the regions on whether to reduce the provinces' power.

Nationalist parties are also set to win in another regional vote in Catalonia on November 25. Both regions, the Basque Country and Catalonia, are advocating a greater autonomy or even full independence and will have a majority in the local parliament, will likely provide a fresh challenge to Rajoy's policies for increased centralisation.

Opposition parties have accused the government of using the crisis to claw back the extensive powers of its 17 autonomous regions, whose overspending was partly to blame for the failure of the country to meet its deficit targets last year.

The central government has offered funding to the regions in exchange of more control over local finances. So far, seven regions, including Catalonia, have said they would tap this liquidity line. The Basque Country is not expected to do so.