Spain took over the EU presidency on Tuesday just as the new European currency came into full use, but the struggle against international terrorism remained top of the agenda. Spain succeeded Belgium in the rotating presidency of the 15-nation community as the Euro replaced national currencies in 12 EU countries, including Spain itself. Thousands queued in Madrid, Barcelona and Valencia to convert pesetas into Euros at about 900 bank branches which opened specially on new year's day for three hours. The issue of terrorism has been highlighted internationally following the September 11 attacks in the United States.
It bulks especially large in Madrid because Spain has its own ongoing terrorism problem, with the militant separatist group ETA conducting a campaign for Basque independence.
Attacks by hooded assailants on banks and police patrols early on New Year's day in the Basque country underscored Spain's special preoccupation with terrorism.
No one claimed responsibility for the incidents but police believe that the attackers were young radicals close to the Basque militant separatist organisation ETA.
Prime Minister Jose Maria Aznar told the French magazine ‘Paris-match’ last week, “Spain will have as a top priority the strengthening of those elements which (will) make the fight against terrorism more effective.”

Spain will preside over the EU during an especially charged time marked by developments in Afghanistan, the Middle East, the slowing down of the world economy and Argentina's economic crisis.
Bureau Report