Euskadi has its own Parliament, its regional institutions are responsible for raising the main taxes and it has a high degree of autonomy which enables it to govern and administer matters directly such as: Inland Revenue and Tax Collection, Industry and Economic Promotion, Transport, Housing, Environment, Education, Health and Law and Order, etc.

A long-term economic agreement regulates financial and fiscal relations with the Spanish State. Euskadi has its own administrative organization which is highly efficient as, according to official data referring to 2004, the Basque economy is the autonomous region with the least debt in relation to GDP: 3.1% and far lower than the average date, calculated at 6%.