page_title: End of Basque home rule in Spain
section_title: Basque Economic Agreement
hierarchical_section_title: End of Basque home rule in Spain / Indefinite loss of home rule after war / Basque Economic Agreement
caption_attribution_description: Retrato de Fermín Lasala y Collado
context_page_description: The end of Basque home rule or fueros in Spain was a process coming to a head in the period extending from the First Carlist War to the aftermath of the Third Carlist War. It brought to an end the status of sovereignty coupled with allegiance to the Crown of Castile held by the different Basque territories for centuries. In the French Basque Country, home rule was abruptly suppressed during the French Revolution.
  The loss of home rule was followed by the Basque Economic Agreement, a period of shaky peace with occasional popular uprisings, like the Gamazada centred in Navarre, and the emergence of Basque nationalism.
context_section_description: When the Basque self-government was abolished, a number of sticking points remained to be addressed, such as tax collection or military service. The Basque Liberal elite based in the capital cities, hung onto home rule and the pre-war political status. In the midst of military occupation lasting up to 1878, freedom of expression was suppressed, especially targeting any demands in favour of the fueros. In view of the emergency state in the Basque districts, Basque political figures opted to bring their case over to Madrid by launching a newspaper, La Paz. It featured the collaboration of new and veteran home rule advocates from all four Basque districts.
  On the other hand, the Spanish premier focused in phasing out all traces of home rule. However, Canovas was a pragmatic; other than military strongholds, customs officials, and courts in the capital cities, the Spanish governmental infrastructure was virtually non-existent in the Basque Provinces. In addition, their knowledge of Basque territory was negligible.
  Navarre appeared to remain unscathed by the political tensions in Álava, Biscay, and Gipuzkoa, but in early 1877, Canovas del Castillo, who initially meant to hold talks with all four Basque districts, made the most of Navarre's separate position to suppress also their 'Compromise Act', arguing that it was but a regular (parliamentary) act. The fiscal quota remained unaltered since 1841, so he decided to change that and totally level Navarre with a regular Spanish province in the national budget.
  During the preliminary parliamentary debates, the dividing gulf between the government and the Basque-Navarrese became apparent; Canovas del Castillo was adamant that the war ending 1839 and 1841 laws were nothing near of a treaty. "A matter of force comes to constitute Law, since force is Law when force generates a status", he went, attempting to justify his position. The governmental law was eventually passed by the Spanish parliament, supported by 123 votes, while 11 opposed it: four of the seven Navarrese MPs, and the rest of the Basques (seven). A situation of instability followed, in view of which the central government decided to submit Count Tejada de Valdosera, a jurist, to Navarre with a view to reaching a new agreement that eventually led to the "Tejada-Valdosera Convention". The compromise established guarantees for Navarre's separate administrative arrangement within Spain. No Navarrese MP in Madrid opposed the legal arrangement, which gave way to speculations and the Navarrese MPs' own bizarre, regretful accounts as to their stance on a law regarded as an imposition on both Navarrese coffers and idiosyncrasy.
  In the Basque Provinces, the first call ever to the Spanish military draft was met with frontal opposition of the general councils by November 1877. Tension mounted again between the Basque general (chartered) councils and the Spanish government. Canovas demanded the immediate execution of the order. Provincial councils were then appointed by the Spanish government, all of them answerable to the Spanish governmental deputy in each district (the gobernador civil). In Biscay, the most upfront district to reject the abolition of the fueros, Canovas ordered an immediate dissolution of the general councils (diputaciones generales). Álava and Gipuzkoa followed suit.
  However, the climate of tension generated persuaded the Spanish premier that some kind of compromise with the three Basque councils was the only solution to prevent further unrest, and guarantee long-run stability. Negotiations of the Canovas government with Liberal chief officials of the three Basque Provinces eventually led to the 1st Basque Economic Agreement on 28 February 1878, initially a temporary solution extending for 8 years. The compromise brokered by Fermin Lasala found its roots in the Tejada-Valdosera Convention for Navarre. The announcement of the compromise in the official gazette Gaceta de Madrid dwelt on its alleged political and economic benefits: 1. Expansion of the constitutional order to all Spain. 2. Incorporation of the Basq
caption: Fermin Lasala, wealthy donostiarra and prominent figure during Canovas del Castillo's office in a critical period
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