oct. story refiled add drop word headline sonya dowsett bilbao spain spain catalonia head toward constitutional collision region claim independence lawmakers side crisis point way north basque country among verdant mountains basque country border france once-violent campaign independence petered generous fiscal autonomy madrid help keep popular agitation independence check economic resentment aitor esteban organizer basque national party spain parliament tell reuters interview party headquarter bilbao people feel need act upon grievance money make big difference catalan government call basque-style deal insist instead independence declare overwhelm support secession oct. referendum ban madrid moderate lawmakers region rule coalition privately say could drop independence claim give tax autonomy basque country enjoy madrid socialists suggest could serve model compromise would defuse spain big political crisis since fail coup 1981 although cost central government would significant basque stag modest protest madrid violent crackdown catalonia referendum crisis fail rekindle secessionist fervor streets bilbao basque capital nestle bank nervion catalan flag hang balconies alongside basque flag sign solidarity bilbao prosperous peaceful unionist politicians need bodyguards car bomb constant fear tourists crowd taverns old town world-famous guggenheim museum 17 percent basques want independence less half would like hold referendum issue accord poll carry university deusto basque militant group eta kill 850 people decades-long campaign carve separate state effectively end arm resistance year surrender weapons region one high economic output per capita one low unemployment rat spain independence debate standby basque country great fatigue years violence uncertainty economic crisis say xabier barandiaran professor sociology deusto university basque fiscal autonomy among generous region europe date back 19th century enshrine spain 1978 constitution extend catalonia economically powerful region account fifth national production spanish state would lose 16 billion euros accord 2014 study research house csic would equal 13 percent next year budget affect spain deficit borrow cost reason spanish prime minister mariano rajoy rule generous treatment catalonia basque accord madrid region collect nearly tax forecast total 13 billion euros 15 billion year due return 800 million euros madrid know annual quota cover cost national expense defense infrastructure rajoy sweeten arrangement since regain power head minority government last year price secure basque national party support 2017 budget prove unpopular regions would almost certainly oppose similar deal catalonia would mean cut share state revenue typically regions pass tax madrid redistribute money back accord formula favor poor regions former catalan leader artur mas try hold talk rajoy 2012 grant catalonia power raise spend tax prospect negotiations current climate look bleak catalonia long say pay disproportionate level tax madrid relation central fund receive study back budget ministry say catalonia pay state 9.9 billion euros receive catalan economy ministry say even high economists say overhaul fiscal relationship madrid regions overdue current system lead intense tax competition regions autonomous communities become under-financed result cut public service situation critical might political momentum need tackle say antonio garcia pascual barclays capital basque country spain 's effective expensive antidote secession