Islamist groups were not the only ones hard hit by the aftermath of Sept. 11 on their organizations. In October 2001, as part of the counterterrorism campaign, the U.S. administration inducted ETA into the Specially Designated Global Terrorists category, requiring institutions to take specific legal and financial measures against them. ETA has been on the Department of State’s Foreign Terrorist Organization list since 1997 and was recognized as a terrorist organization by the European Union (EU) under the Council Common Position 2001/931/CFSP in December 2001.

Although the struggle between ETA and the Spanish government persists, some headway has been made in the anti-terrorist campaign during and after former President José Aznar’s government. A number of suspected ETA members have been arrested since 2001, and authorities succeeded in dismantling ETA terrorist cells, logistics bases and confiscated over 100 pounds of explosives. Spain has also secured bilateral agreements with the United States, France and Mexico on denying ETA sanctuary, choking off its funds, and sharing intelligence on terrorism. In 2001, the EU agreed on an act to freeze ETA’s and Batasuna’s financial assets, and in 2002, Spain and France signed an agreement that gave Spanish counterterrorism officials access to information from arrested ETA members. Spain and France also created the first “multi-national police investigation teams” in 2002, where police forces from both countries are present in each others investigations on terrorism and other crimes.

Nevertheless, the battle is far from over. ETA uses whatever means it can to win political victories and put itself in the spotlight. On March 2, 2007, the government released Iñaki de Juana Chaos, an ETA terrorist who was in prison for killing 25 soldiers and police officers in the 1980s. Instead, he was placed under house arrest because of ill-health due to a self-imposed 114-day hunger strike. His release, which afforded him the opportunity to serve the remainder of his sentence at home under police supervision, was made to prevent the renewed escalation of violence which the government feared would occur if he died in custody. However, many saw this as a concession made to ETA who touted the release as an achievement.

ETA has carried out a few attacks since September 2001, despite tightened security measures. In fact, ETA may be broadening its vision in defiance against the U.S.-led war on terrorism. Whereas the group has carried out attacks mainly against Spanish police and government figures in the Basque region, in May 2002, Spanish police foiled plans by ETA to car-bomb an unspecified target during the EU-Latin American summit held in Madrid, arresting several ETA members and seizing 400 pounds of explosives. Such an attack, if carried out at the summit or against the politicians attending, might have become the first act of violence against non-Spanish or French targets, and would have marked a significant turning point for ETA's traditionally domestic-focused operations.

Al-Qaida’s attack on Madrid in 2004 inadvertently impacted ETA. The Basque group suffered a loss of public support as the public became increasingly more sensitive and disgusted by terrorism. The Basque population also felt that ETA was out of touch with public opinion, and hence, no longer represented their interests. Also, in recent years the Spanish government has instituted more rights for the Basque minority, further opening the political system. As long as the government makes progress in addressing Basque interests and grievances, ETA – one of the last historic left-wing separatist terrorist groups ­­– will find itself pressured to join the political process instead of resorting to political violence – if it is indeed serious about securing further concessions for the Basque population.