The Basque socialist and 'popular' parties, the PSE-EE and the PP, signed an agreement today enabling the socialist Patxi López to become the new 'lehendakari' and the PP's Arantza Quiroga to preside over the Basque Parliament.

Both parties agreed that the agreement 'will open a new era' designed to 'unite society'.

The ten-page document comprises agreements over anti-terrorist policy, measures against the economic crisis, development of self-government, education, health, housing, linguistic policy and the Basque media group EiTB.

It also provides for the creation of a 'monitoring committee', budget negotiation and an agreement from the PP not to present or support any motion of no-confidence against López.

Spokespeople for both sides made it clear that this basic agreement will create a stable platform for López's government and an Executive that they both feel will be both 'strong and stable', in order to tackle fundamental issues like the end of terrorism or the recession.

When asked about future parliamentary president, Arantza Quiroga's inability to speak the Basque language, PSE-EE secretary, Rodolfo Ares, said that she would be 'judged on the decisions she made as president'.

For his part, the PP secretary general, Iñaki Oyarzabal, insisted that today's agreement was a unifying one, not a divisive one and promised that the PP would be 'totally loyal' to the future socialist government, with 'the future of the Basque country in mind' regardless of relations between the two parties in the rest of Spain.