The Balearic government announced a 200 million euro "cost of living shield" to help families in need over the winter period.Balearic President Armengol said that 80 percent of the population would benefit from the cash as the majority of families had earnings of less than 52,000 euros a year.

Armengol said that a sizeable part of the money would go to help those people without a job and who were unable to claim unemployment benefit.

There are widespread fears that rising fuel and living costs will hit families hard this winter. Palma was recently named as one of the most expensive places in the country to go food shopping.

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The end of the holiday season will mean that thousands of people will be left without a job. Armengol said that they wanted to act now to try and help the problem.