Euskadi, as the Basque Country is known in Basque, is a small country but with a strong identity. With a history stretching back over 5,000 years, Euskadi has a distinctive culture and a language that is unique in the world. Euskadi is today a modern country that has managed to adapt to the times and is at the forefront of Europe in terms of quality of life and sustainable human development.
The Basque Country has a surface area of 7,000 km2 and a population of over 2 million. Its location means it is a connecting link on the European Atlantic Corridor.
The Basque Country has a Parliament and Government with a high degree of autonomy in policy areas including education, industry, culture, health, law enforcement and social services. Through its management of them, the Basque Country has achieved high human development indexes.
Euskadi is likewise made up of three provinces: Araba, Bizkaia and Gipuzkoa. The institutional architecture of each is based on the executive bodies known as Provincial Councils and the legislative chambers called General Assemblies. The origin of these institutions dates back to the 15th century.
Euskadi has its own tax system, which is unique in the world. The Economic Agreement embodies the bilateral tax and financial relationship between Euskadi and the Spanish State. The development and progress that Basque society has experience in recent decades can only be understood today taking the Instrument of the Economic Agreement into account.