March 22 (Bloomberg) -- ETA, the terrorist group that has killed more than 800 people in its fight for independence for the Basque region of northern Spain, today announced a permanent cease-fire.

ETA commandos, portrayed in video messages in front of a twisted snake symbol with their faces covered by white hoods, will lay down their weapons from March 24, ETA said in a statement published on the Web site of Gara newspaper.

``The aim of this decision is to drive forward a democratic process in the Basque country to build a new framework in which our rights as a people will be recognized,'' ETA said in the statement. It didn't make any reference to surrendering or disposing of weapons or explosives.

The announcement vindicates Prime Minister Jose Luis Rodriguez Zapatero's decision to offer talks to ETA should the group declare an unconditional and permanent end to violence. ETA, whose full name is Euskadi Ta Askatasuna or Basque Homeland and Freedom, has been weakened by recent arrests and hasn't killed anyone in almost three years.

``We hope and wish that this is the beginning of the end,'' Deputy Prime Minister Maria-Teresa Fernandez de la Vega said. ``This is good news for all Spaniards though the government has an obligation to be more cautious than ever.''

The Spanish Parliament voted May 17 last year to back Zapatero's conditional offer of negotiations. Any talks would address issues such as the future of ETA members held in Spanish jails, rather than the region's political status, a government spokesman said at the time.

Fight for Independence

ETA's fight to win independence for the Basque regions of northern Spain and southwestern France reached its peak during Spain's transition to democracy from the dictatorship of General Franco. In 1979 and 1980 the group killed more than 160 people, according to the interior ministry Web site.

In 1973 the group assassinated Franco's Prime Minister and chosen successor, Admiral Luis Carrero Blanco in 1973. The bomb which killed Carrero Blanco was so powerful that his car was blown over a nearby apartment block into the courtyard beyond.

ETA's threats created a climate of fear in the Basque country, damaging institutions such as businesses and universities. Police in the region, among the group's main targets during its campaign, cover their faces when making arrests to avoid being identified.

Academics including Carlos Casadevante, a professor of public law, were forced to flee the region, after being threatened for speaking out about ETA's actions.

ETA Violence

``ETA violence involves a lot more than lethal acts or Killing,'' Francisco Llera, a professor of political science at Spain's Universidad del Pais Vasco, said. ``It's also about intimidation of society.''

Businessmen in the region were forced to pay a ``revolutionary tax'' in order to finance the group. Barrenetxea, Goiri and Cia, a packaging business in Bilbao that refused to pay the tax, was bombed Feb. 22.

``If the announcement doesn't mean an end to the extortion, then the step wouldn't be as firm as it appears to be,'' Carlos Etxepare, chairman of Basque savings bank Kutxa, said. ``I have the hope that this is the first step to recover the image of Basque businesses and people in the world.''

ETA hasn't killed since Islamic radicals bombed Madrid commuter trains on March 11, 2004, killing 191 people. That attack hardened Spanish attitudes toward terrorism as millions of demonstrators took to the streets across Spain to show solidarity with the victims.

People's Party

Jose Maria Aznar, who was then prime minister, tried to blame ETA for the bombings which came three days before a general election. Aznar's People's Party was defeated by Zapatero's Socialist Party after leading in the polls in the days before the attack.

The issue of terrorism has divided Spain's two main political parties since then, with the PP accusing the government of undermining efforts to defeat ETA. Zapatero today called on the opposition leader Mariano Rajoy to support the government during the negotiations over the future of the region.

``You, who represent such an important number of Spaniards, are essential for this process to end as we all want,'' Zapatero told Rajoy in parliament.

A final settlement may remain some way off. In Northern Ireland, the regional assembly is still suspended almost nine years after the Irish Republican Army declared its cease-fire as rival parties argue over the group's weapons.

Victims of Terrorism

ETA, which killed 812 people in total according to the Association for the Victims of Terrorism, will make its call for a referendum on the future of the Basque region a central part of a final settlement, the statement said.

Such a vote will divide Spain's 2.1 million Basques. Regional president Juan Jose Ibarretxe saw his Basque Nationalist Party's share of the vote fall to 39 percent from 43 percent when he fought last year's regional election calling for increased autonomy from Spain.

The region already has more autonomy than any other in the world, according to Spain's interior ministry. The regional government in Vitoria controls its police force, the tax agency, schools and some television and radio stations. The Basque language is taught in schools and used on the public airwaves.

To contact the reporter on this story: Ben Sills in Madrid at bsills@bloomberg.net.

Last Updated: March 22, 2006 12:25 EST