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The Basque History of the World - Mark Kurlansky [143]

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to have preserved the system in an open economy. The Spanish market would have been overrun with European goods.

While most so-called rust belt areas have turned to service industries, when the PNV-dominated Basque government took over the management of the Basque economy, it wanted to preserve industry. “The Basque government did not want to lose the industrial spirit of Vizcaya,” said Jon Zabalía, a Vizcayan PNV legislator.

The policy was to identify the industries that could be saved, many of which were owned by PNV families, and to look for new industries. Altos Hornos de Vizcaya was remade into Aceria Compacta de Bizkaia, a company that produces steel by using computers but without blast furnaces. Three hundred and sixty workers now produce 800,000 tons a year—more than Altos Hornos de Vizcaya used to produce with 12,000 workers. Shipbuilding has been reduced but maintained. La Naval, the longtime Spanish government shipbuilder, restructured with 1,800 workers instead of 5,000.

A road runs along one bank of the Nervión and a traveler could look across the river, a particularly dramatic sight against a night sky, and see the fiery red glare of exploding blast furnaces, cranes swinging, tall smokestacks releasing dark clouds. Pío Baroja once wrote of this sight, “The river is one of the most evocative things in Spain. I don’t think there is anything else on the peninsula that gives such an impression of power, of work, and of energy, as this 14 or 15 kilometers of river front.”

Today, it is dark along the Nervión at night. Though there are still a few shipyards and some steelworks, there are no blast furnaces and about 400 industrial buildings have been abandoned. From the death of Franco, for the next fifteen years, Basque jobs were steadily eliminated. Many workers were in their forties and fifties and hard to retrain. They are being permanently supported by Spanish government pensions if they were in the public sector and by the Basque government if they were in private-sector jobs. Thousands from other parts of Spain have gone back to their regions. By 1990, unemployment had reached 26 percent. Since then it has steadily improved. By 1998, it was 20 percent, slightly better than the Spanish average. The per capita income in the Basque provinces is still one of the highest in Spain. But among young people between the ages of eighteen and twenty-five, the ages that Herri Batasuna and ETA are most successful at attracting, unemployment has stayed at 50 percent.

The Basques have remained leaders in banking. In 1988, Banco de Bilbao and Banco de Vizcaya merged into one of Europe’s largest banks. This marked the beginning of a trend in mergers and consolidation of banks all over Spain. Despite these new pan-Iberian giants, the Vizcayan bank created by the 1988 merger, Banco Bilbao Vizcaya, is still the second largest bank in Spain.

Detail from the cover of a 1930 catalogue for the Euskalduna, the now defunct Bilbao shipyard that was founded on the Nervión in 1900 and became a victim of post-Franco economic restructuring. (Untzi Museoa-Maritime Museum, San Sebastian)

Like the nineteenth-century Basques who wanted to use rail links to open up their industry, today’s Basque want to build rail links between Basque cities and Europe. A Basque government-built commuter railroad already runs from Bilbao to Hendaye, linking Vizcaya, Guipúzcoa, and Labourd. It is the first local train to connect France and Spain’s Atlantic coast. Spain, like Russia, had intentionally built its railroad tracks with a nonstandard measurement to protect against invasion by rail.


IN 1867, a group of writers in France, including George Sand, Alexandre Dumas, and Victor Hugo, wrote a guide to Paris in preparation for a world’s fair. Hugo’s introduction to the guide, titled “The Future,” began: “In the 20th century, there will be an extraordinary nation. This nation will be large, but that will not prevent it from being free. It will be illustrious, rich, thoughtful, pacifist and cordial to the rest of humanity. It will have the gentle seriousness

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