Spain’s Prime Minister Pedro Sánchez has unveiled a new social aid package aimed at curbing food prices, yet the country’s ruling coalition must still approve the measures before the end of the year.

During a speech at a rally of the Catalan Socialist Party (PSC) in Barcelona, the Prime Minister commended the work done up to now to “bend the curve” of inflation in the country thanks in part to the “Iberian derogation”, a political agreement between the European Commission, Spain and Portugal, EFE reports. This refers to the intervention mechanism within the electricity market aimed at reducing the wholesale market price and lowering bills for households and businesses.

Sánchez said that before the year-end, the coalition government will approve a “new aid package” aimed at the country’s “social majority,” incorporating “mechanisms to contain the development of food prices.”

In addition, last week, Spain’s Employment Minister Yolanda Díaz said her party (Unidas-Podemos) is negotiating measures with the PSOE party to deal with mounting food and mortgage costs as part of the anti-crisis decree that expires on 31st December, Euractiv reports.

“We are going to put all our resources, as we did during the pandemic, at the service of the people,” Sánchez said during his speech on Sunday. He went on to say that he is committed to this notion “not only out of social commitment but also as a matter of economic efficiency.”

Furthermore, in May next year, Spain is holding municipal elections, deemed the first litmus test for the Prime Minister’s governing coalition with Unidas Podemos.

Subsequently, the parties will face the December 2023 general election. The findings from a recent poll show the socialists are forecast to win next year’s elections, but with a certainty that no party will win an absolute majority to form a government.