The Balearic Government has been ordered to pay 18.2 million euros to the State.
In 2009, the Government signed an agreement allocating more than 14 million euros for the remodelling of Playa de Palma.
The Government submitted invoices for 14 million euros plus 4 million euros in interest, but the Secretary of State said the invoices did not justify the expenses.
The court has dismissed an appeal filed by the Regional Administration, saying the invoices presented by the Balearic Government correspond to studies, technical and advisory work.
"The connection with the repair of urban infrastructure is not justified, which was what was financed in part by the agreement,” according to the court ruling.
The court also rejected the invoices presented for a series of courses on new technologies.
“No relationship can be seen with works aimed at modernising the Tourism Sector, these are actions on the physical environment to improve the conditions of tourism in that area.”
The Government also tried to avoid paying interest and criticised the Ministry for claiming a position of superiority and not as equal members of the consortium.