THE Balearic and central governments are at war over funding with Palma threatening to take Madrid to court.
The Socialist central government is not only threatening to cut funding and pull the plug on Palma's huge green belt project but is also refusing to recognise the Balearics' road expansion pact approved by the previous conservative government.
Madrid's u-turn on the project has jeopardised scores of vital road improvement projects and could cost the Balearics 240 million euros.
The Conservative PP government in Palma accused the Socialists in Madrid of mounting a political vendetta against the Balearics but vowed to do everything in its powers to defend the best interests of the region and that could mean taking central government to court.
Spokesperson for the PP in the Balearics, Miguel Ramis warned Madrid yesterday that it is making a big mistake by cancelling road and development funding as they are not only complicating things for the PP and the Balearic government but making a direct attack on the population. The Balearic Confederation of Business Associations (CAEB) condemned central government's move yesterday proclaiming that the money will be found to complete the road expansion projects. The road improvements are vital for the future growth of the local community, business and tourism, a spokesperson said last night.