The political future of Euskadi (Basque Country) is at a crucial juncture. Basque nationalism, a political and ideological journey fathered by Sabino Arana in the end of the 19th century, has been successful at obtaining an exceptionally high degree of autonomy for the region, while falling short of enabling the Basques to decide their own future. Basque identity remains fraught with tension; however, the tendency towards inclusive and non-essentialist self-definitions that reconcile parochialism and cosmopolitanism and agglutinate the two polar social collectives of nationalists and non-nationalists within the Basque Country is growing. And Basque culture, historically marginalized, has blossomed in an environment of globalization, post-modernity, and European integration. This enables greater levels of flexibility towards and interaction with the neighboring Spanish province of Navarre, the Basque-French territories, and the Basque diaspora. In essence, the countryâs imagined borders are expanding and include virtual bridges which span international borders and oceans alike. A political accommodation, however, is far from settled. The current negotiations with the terrorist group Euskadi Ta Askatasuna (ETA), which declared a permanent ceasefire last year, bring to the fore many questions about the future of the Basque country that remain unsolved and make Spaniards uneasy. The purpose of this paper is to assess both the limits and the possibilities for a settlement of the political question, and the impact that alternative scenarios would have in Madrid, Brussels, and Vitoria-Gasteiz. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]