Feb. 2 (Bloomberg) -- The Spanish parliament opposed a plan by the regional government of the Basque country to hold a referendum on virtual independence from Spain.

The parliament voted against the plan at a session last night in Madrid, with 313 lawmakers opposing the proposal and 29 in favour, with two abstentions, Agence France-Presse said. The plan presents the biggest challenge to Spain's 27-year-old constitution.

Spanish Prime Minister Jose Luis Rodriguez Zapatero and Mariano Rajoy, the leader of the biggest opposition party, both reject the plan arguing it goes against Spain's Constitution. Juan Jose Ibarretxe, head of the Basque government and author of the proposal, said the vote in the Basque country will take place regardless of the national parliament's decision.

``The relationship of the Basque country with the rest of Spain will be decided by all Basque citizens, not half of them, and by all the citizens of Spain,'' Zapatero said in a speech to parliament yesterday.

The Basques are seeking more local powers for their already autonomous government, including regulation of financial markets, telecommunications, energy, and banks. The plan would also grant more regional control over the judicial system, and police. Zapatero's ruling Socialist party and Rajoy's Popular Party together have 31 seats out of the 75 seats in the Basque regional parliament. Ibarretxe's party has 26 seats.

The plan has the backing of Batasuna, a Basque political party that's been outlawed because of its ties with terrorist group ETA, which has been campaigning for an independent state consisting of the three provinces of the Basque region in north- east Spain, the Spanish region of Navarra and the three provinces of France's Basque region.

Hotel Bomb

Since the late 1960s ETA has killed more than 800 people in Spain. The latest attack took place two days ago, when a bomb exploded in a hotel in Denia, on the Mediterranean coast, slightly injuring one person. The terrorists had called about half an hour before to give an alert about the bomb.

The Basque region, which has greater local powers than Spain's 16 other autonomous regions, controls a regional police force, tax collection and the education system. The Basque language, one of Spain's official tongues, is taught in schools and used on radio and regional television.

The Spanish state, as independence-minded Basques refer to Spain, still controls the judiciary, defense and national economic policy, borders, customs and international relations.

``We, the Basques that live and work in the Basque country today, will decide our future,'' Ibarretxe told parliament.

To contact the reporter on this story: Paul Tobin in Madrid at ptobin@bloomberg.net

Last Updated: February 1, 2005 19:51 EST