The ETA, a Basque-based nationalistic, separatist group, is a legacy of 40 years of authoritarian-centralist negation of Basque cultural and political aspirations. The continuation of ETA terrorism under the present democratic regime is a consequence of the distorted perceptions of sociopolitical reality held by the terrorists. The terrorists, unlike the vast majority of the Spanish/Basque population, fail to recognize the new regime's receptivity to negotiation and change. ETA terrorist activity contributed to the gravest crisis of the new Spanish democracy in February 1981. The failure of the coup was not only a landmark in the young democracy but also marked the turning point in the fortunes of the terrorist movement. As a consequence of internal developments within the ETA organization, a decline in social support, and the efficacy of the State's antiterrorist strategy, ETA has been increasingly isolated and marginalized. Although the elimination of ETA is unlikely, the prospects for a significant reduction in ETA violence are promising. Bold political decisions over negotiations with ETA could help deepen the isolation of hardcore terrorists. 49 notes.