SPAIN DISSOLVING?

Here's the formula: Put a Socialist in power, screw up your country.

MADRID (Reuters) - Speculation swirled on Wednesday 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 Juan Jose Ibarretxe's plan for "free association" with Spain was crushingly rejected by the Spanish parliament on Tuesday, but he defiantly vowed to push ahead with a referendum if armed separatists ETA end their violence.

Socialist leader 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.

Basque separatist terrorists ETA have waged a bloody war against Spanish rule for decades. Zapatero, who took power after Spanish citizens were cowed into replacing a more conservative government by the Madrid bombings last year, came into office promising them the moon in exchange for their support. They're holding them to his promises, demanding more, and withholding support. That's what terrorists do. Because of all this, Zapatero is basically screwed:

Pressured by the opposition's calls for a tougher line on the Basques, Zapatero cannot afford to alienate regional allies in wealthy Catalonia, who support the Socialists in power there but are also pressing for far more autonomy from Madrid.

The Socialist prime minister is betting he can oust the Basque country's ruling coalition at upcoming elections, defusing what he calls a threat to Spain's 1978 Constitution.

While the prime minister took a conciliatory approach, his Socialist party adopted a tougher line in Tuesday's parliamentary debate, in an apparent attempt to deflect criticism from the opposition Popular Party (PP).

So who may ride to his rescue? None other than the Popular Party of Jose Aznar. That's the party that Zapatero's Socialists ousted after the Madrid attacks:

On Wednesday, Socialist party spokesman Jose Blanco floated the possibility of an alliance with the PP in the Basque elections, to close ranks against nationalist parties. "The Basque premier has to call elections ... his mandate has finished," Blanco told a news conference. "We are in an election campaign in the Basque country and the people will decide."

Basically, Spain is in a big bloody mess now, with other regions demanding increased autonomy. Federalism is a good thing, of course, but this looks downright schismatic.

One more time, with feeling: Put a Socialist in power, screw up your country. Words to live by.