Bilbao, Spain  - Talks to form a new government began Thursday in the Basque region of northern Spain, with Basque nationalists trying to hold onto power despite socialist success in Sunday's elections.

The Basque Nationalist Party (PNV), which seeks greater autonomy from Spain, took the most votes, but did not get a sufficient majority to form a government with its former nationalist allies.

Thus for the first time since the end of Franco's dictatorship in the 1970s, the Basque regional government could be led by a non- Basque nationalist party.

The Socialist Party of Spain's Prime Minister Jose Luis Rodriguez Zapatero appears most likely to head the Basque government - if they get sufficient support from other parties.

Socialist leader Patxi Lopez was tipped by some to form a government with the backing of the centre-right People's Party (PP), but without sealing a formal alliance for fear of aggravating divisions between nationalists and non-nationalists in Basque society.

The PNV, which has ruled the Basque region since it was granted an autonomy status three decades ago, was also hoping to retain power, and launched a round of party talks by meeting with socialist representatives on Thursday.

The PNV wanted to leave past divisions behind and to reach "a vast agreement" to guarantee "political and economic stability" in the region suffering from the violence of the militant separatist group ETA and affected by Spain's economic crisis, PNV president Inigo Urkullu said Wednesday.

The PNV was expected to seek another government headed by Juan Jose Ibarretxe, who has been Basque regional prime minister for a decade, in a possible alliance with the socialists and the smaller nationalist Aralar party.

The new Basque parliament will be the first without legislators close to ETA, after two smaller separatist parties were barred from the elections on the grounds of their links with the armed group.

ETA has killed more than 800 people in its campaign for a sovereign Basque state. (dpa)