The Euskadi Democratic Republic was a communist state founded by the Euskadi Liberation Front on Neu Stuttgart IV. Euskadi is very nationalistic and openly persecuted on Milleauxese, Uhuran blacks and cerafi in their territory.
With the French Civil War beginning in 2172, the Euskadi attempted to liberate the French portions of their homeland, but they were defeated before the civil war ended. The departure of Spain and North France from the German to the American sphere of influence gave the Euskadi, or Basque, people far more independence, as Washington, D.C. was more apathetic about the goings-on in Europe than Berlin was, but tensions still existed. Washington stood by their puppets in Paris and Madrid, and both said that they will cede no territory to an Euskadi state. Terror attacks against French, Spanish and American officials led to Euskadi nationalist groups being collectively labeled as "terrorists" and the American, French and Spanish governments took action. Nationalist leaders were executed and the Euskadi were arrested en masse and sent to a world far from Terra: Neu Stuttgart IV. This ethnic cleansing did little to calm Europe, which later collapsed into war over Germany’s remains, but as far as the Euskadi were concerned this was a blessing in disguise. On Neu Stuttgart IV, they can have a fresh start.
The dreams of a Euskadi state came true with the foundation of the Euskadi State, but pride in this new nation died in a generation. Few Euskadi were highly educated and this new state was having trouble industrializing; those who leave to Milleaux for study often stay there because of better opportunities. The Milleauxese took advantage of this, many of their corporations outsourcing to Euskadi, who paid their workers pennies. Soon, Euskadi was effectively a Milleauxese colony, its government bought out by Milleauxese interests. An economic crisis in 2353 led to the formation of the Euskadi Liberation Front, a nationalist-communist organization that wanted to kick out capitalism and Milleaux. Civil war began when an Euskadi child was shot by Milleauxese security guards during a protest. Much of the Euskadi State’s military, tired of low wages and mistreatment, defected to the communists. The Euskadi capital of Etxebarria fell in 2355 and the Euskadi Democratic Republic was proclaimed. This new state’s first action was to attempt to spread the revolution to Milleaux, but the Milleauxese managed to repel the invasion. Euskadi rapidly industrialized at the cost of millions of lives, and like Uhuru instituted land reforms that was little more than political cronyism. Naturally, Euskadi was an eternal rival of Milleaux, the two only stopping their war to join forces against the cerafi. Euskadi took the brunt of the losses in the Cerafi War, losing twenty million citizens in all, but it emerged a powerful state which later managed to maintain a puppet in western Eierwitz.
Euskadi maintained close relations with the Conseil Systems and always tried to foster revolution in Milleaux through a Milleauxese communist organization called the Workers’ Liberation Front. However, Euskadi-Milleauxese relations cooled by the 2700s and the Mittelland Union State was created as a hegemonic bloc to rule all of Neu Stuttgart IV. When this union collapsed, Euskadi preemptively invaded Milleaux, sparking what would later become the Galactic War. A guerilla war in the jungles favored the Euskadi, who had been training for such a war for decades, while the Milleauxese were militarily incompetent. The Euskadi Army refused to face the Coalition and Milleauxese in a direct conflict, melting into the jungles and striking against Pactist forces when convenient. The WLF also conducted its own war within Milleaux itself and Pactist attempts to cut off supplies to the WLF failed because of a large underground tunnel system that was constantly being rebuilt. The Euskadi received lots of foreign aid from the Allies and eventually an actual expedition force from the Conseil Systems, Halifax and Batavia were sent to defeat the Coalition and Milleauxese. The Euskadi and their allies overran Milleaux and later launched an invasion of Alvenzi Island itself, causing the Coalition to retreat from the world and bombard it from orbit.
Unlike other communist states, Euskadi is as violently nationalist as it is communist, frequently staging pogroms against Milleauxese, Uhuran blacks and cerafi. However, other traits such as a personality cult exist. Father of the Euskadi Nation Hodei Charaiz-Michel, whose body is preserved in a mausoleum in Etxebarria. Political opponents were sent to hard labor camps or used to march through old minefields in order to clear them. The government intentionally set up the Euskadi Intellectual Union, an open forum for discussing ideas, to weed out those with anti-government sympathies. Oftentimes, whenever a new leader would take power, they would institute a mass purge to “cleanse the revolutionary state” of “reactionaries,” meaning the loyalists of the new leader’s predecessors. Famines and peasant uprisings, and therefore massacres, were common.