Abstract
The aim of this article is to present a panoramic view of the Basque Country's capacity and competence for self-government. We have analysed the historical process of industrialization, the effects of the industrial crisis and new possibilities for development of the area's own regional policy based on new institutions (Government and Provincial Councils) that emerged from administrative decentralization in Spain after 1980. In the following section, we analyse the scope of authority in EU regions. Some of the cultural and transport infrastructure projects backed by these Basque institutions are studied. These projects have had a considerable impact on the Bilbao Metropolitan Area. The changes observed in the nation state, specifically in Europe, show contradictory effects. However, they have reduced the State's sovereignty but at the same time have prompted the State to retain powers rather than transfer them to lower institutional levels. This clashes with the desire of some regions or historical nations to access greater shares of self-government, such as the case of the Basque Country.