Eta's 'permanent ceasefire' not enough for Spanish government

However, the move was instantly rejected by the Spanish government which is demanding the separatist militant movement should disband.

Eta members appeared on a video in white masks and black berets to announced the cease-fire. A statement also appeared on the website of the pro-independence Basque newspaper Gara yesterday.

However, the group has not mentioned disarming – a key Spanish government demand.

Eta had previously declared a ceasefire in September but gave no details at that time about how long it would last.

Now its new statement states this is a "permanent and general ceasefire which will be verifiable by the international community".

The statement added: "This is Eta's firm commitment toward a process to achieve a lasting resolution and toward an end to the armed confrontation."

Eta also declared what it called a permanent ceasefire in 2006, however that lasted nine months when talks with the government broke down.

Two people died in an Eta car bombing in December 2006 at Madrid's Barajas airport as the group abandoned the truce.

The terrorist group's last deadly attack in Spain was a July 2009 car bomb that killed two policemen on the island of Mallorca.

Eta stands for Euskadi ta Askatasuna which means Basque Homeland and Freedom.

It has killed more than 825 people over four decades in its violent fight for an independent Basque state in northern Spain and south-western France.

Eta is considered to be a terrorist organisation in Spain, the European Union and the United States.

Speculation has been rife for weeks in Spain that Eta would issue a new statement, but the country's government has urged caution.

Two weeks ago Prime Minister Jose Luis Rodriguez Zapatero said the only statement he wanted from Eta was one announcing its dissolution.

Yesterday, the Spanish government rejected the ceasefire announcement and repeated its demands that Eta should cease to exist.

Deputy Prime Minister Alfredo Perez Rubalcaba said Spanish governments and mainstream political parties have maintained that all they want to hear from Eta is that it is disarming and giving up.

He added: "It is evident that once again, Eta has not done what we democratic parties expected."

Eta's statement yesterday maintained that the group was open to dialogue and negotiation.

However, it also reiterated standard Eta positions, such as its belief that the Basque people have the right to decide whether to remain part of Spain or break away as a separate country.

Mr Rubalcaba claimed Eta had maintained a catalogue of demands and an arrogant tone.

He added: "In other words, Eta still wants a price to be paid for ending violence. If you ask me if this is the end (of Eta), I would say no. If you ask me if this is what Spanish society hoped for, I would say definitely not. Put another way, is this bad news? It is not. But it is not 'the' announcement."

The ceasefire is believed to have come about as a result of pressure from Batasuna, the Basque nationalist political party linked to Eta.

The party was ruled to be illegal in 2003 but it hopes the ban on its activities will be lifted so that it can take part in elections which are taking place in May.