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According to one negotiator, the dealbreaker was the Lib Dem demand that Labour move to cut the deficit faster, implementing spending cuts this year.
While commercial television has generally done a bit better, the national public broadcaster, RTVE, is implementing spending cuts of 204 million euros this year, on a budget of 1.2 billion euros, and faces further reductions next year.
Mr Callaghan spent his last years in office implementing spending cuts mandated by the IMF, to the fury of his party, and John Major often alienated his Tories with tax rises and a moderate line on Europe.Mr Brown's party cannot even console itself that its final months in power if that is what the next half-year turns out to be will see radical change on the ground.
He was tasked with reforming the economy, and introduced unpopular economic austerity measures, implementing spending cuts and tax rises.
The government is implementing spending cuts in a bid to repair public sector finances, which were hit by the economic downturn following the credit crunch.
The government wants a more streamlined civil service focused on delivering its major changes in education, health and welfare as well as implementing spending cuts.
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Mariano Rajoy, who last night swept to power in Spain, will also lay out plans to implement spending cuts to remain within limits set by Brussels.
In all the excitement about the gift, organisations can gloss over the investment required to implement – spending money strategically is harder than you might think.
In "Cutting edge" (October 2nd 2010) we said that Ireland implemented spending cuts and tax hikes amounting to 2% of GDP in 2009.
There is a real risk that Whitehall will not implement spending reductions properly, and we are concerned that increased pressures on services will lead to more frequent failures," said Daniel Thornton, co-author of "Managing with less: the 2015 spending review".
Alexis Tsipras's surprise move to tighten his grip on power, with what he had hoped would be a fresh mandate to implement spending cuts and reforms, is showing all the signs of having backfired.
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