the economic recession has , meanwhile , prompted the government into overhauling the labour market rigidities that have in no small way contributed to the decreasing competitiveness of basque industry the twin issues of a new political arrangement , involving a form of cohabitation with the nationalists , and of deregulation , involving a loss of trade union power , can - if they are properly addressed - help the basque country a great deal as it seeks a sure route towards recovery .