Photo Friday: Where In Spain Is This?

Where in Spain is this?

This week’s photo challenge is a bit harder, but not to worry, we’ve got lots of hints for you:

-This photo was taken in a city in the Basque Country.
-It’s a small city in the mountains.
-They serve wonderful tapas there.
-It’s nearby La Rioja.
-It was named Green European Capital for 2012.

Where is it? Leave your guesses in the comment section below.

See past Photo Friday challenges here.