New Guggenheim in the Basque Country?

There are rumors that developers in the Basque Country are planning to open a new branch of the famous Guggenheim museum, to complement the existing one in Bilbao.

Plans are afoot to build a new museum in Guernica, the former capital of the Basque country (and still seen as the cradle of the Basque culture). According to The Art Newspaper, "The concept is to create a modest-sized venue for temporary exhibitions and to commission artists' interventions in the landscape."

Guernica already receives a moderate amount of tourism, due to its painful place in European history as the site of a massive aerial bombardment from Hitler (on behalf of Spain's General Franco). It also has a very good peace museum to commemorate the atrocities. See Pictures from Guernica.

But politicians clearly hope the new museum could have the same effect it had on Bilbao, turning what was always referred to as an 'industrial backwater' into the vibrant center of tourism it is today.

If plans go ahead, would a case be made to return Picasso's famous painting to the town that inspired it? The artist's depiction of the bombing of Guernica is currently housed in the Reina Sofia in Madrid, but the Basques could make a good case for it to be moved.

See pictures of the Guggenheim in Bilbao.