Ireland has been ordered to repay more than €15 million in funding incorrectly claimed from the European Commission.
The State appealed to the European Court of Justice in Luxembourg after the commission ordered the return of €15.6 million in European Structural Fund money in February 2003.
The court released its ruling this morning - rejecting all four grounds of Ireland's appeal.
The money had been claimed as part of nearly €1.9 billion granted for tourism, and industrial and human resources development programmes covering the period 1994-1998. The spending was co-ordinated by the Department of Enterprise, Trade and Employment.
Following an audit in late 2000, commission officials found that a procedural and accounting error meant too much cash had been allocated to the National Training and Development Institute (NTDI) and the Central Remedial Clinic - both under the responsibility of the National Rehabilitation Board.
Although Ireland accepted there had been an error, it had been argued that over-financing had not occurred because the same accounting error - in converting ECU's (European Currency Units) into punts - also led to under-claiming for eligible projects.
The court found there was insufficient documentation supporting the claim of under-funding and that Ireland was responsible for ensuring that rules governing co-financing were observed.
It rejected Ireland's claim that the error was merely technical and that reimbursement would be a disproportionate response.
As Ireland took the action and lost, it is also liable for legal costs, the court found.