Ciutadella. The German chain’s supermarket at the western end of the island has proved popular

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The Balearic Government has now granted Lidl a licence to open a large store in Maó. The German supermarket chain applied for a licence in 2004 which was denied and then appealed against the decision. Last summer the Balearic High Court overturned the licence refusal and ordered the Regional Department of Commerce, Industry and Energy to grant the licence.

On learning the court's decision Lidl presented a letter to Maó Council asking them to restart the company's application for a trading licence which should be forthcoming within a few weeks according to the Mayor, Vicenç Tur.

However, the company may still be frustrated in its attempts to open a new store on the Maó industrial estate. The Councillor for Economy, Antònia Allès, has expressed doubts as to whether recent changes in the law will affect the company's plans.

Last year, amendments to the Balearic law of commerce restricted the size of commercial outlets in Menorca to 400 sq.m. whereas Lidl had planned to build a store covering 1,727 sq.m. with 789 sq.m. dedicated to sales. In addition, the moratorium introduced by the Island Council last October prohibits commercial establishments from being constructed on industrial estates.

It could be that Lidl's case falls under another section of the law and that the chain will be allowed to continue with its plans, and will only have to conform to the regulations in force at the time the project was started (2004) in which case the recent changes will not be applicable.