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It proposed fresh spending cuts along with tax increases in order to hit the strict deficit targets imposed by the EU.
Instead, it has become mired in arguments over how to apportion the austerity needed to hit the EU's strict deficit targets.
If he considers it more important to save some services from ruin, it could eat up much of the cash he has reclaimed after ditching George Osborne's strict deficit reduction plans.
Mr Rajoy threatens to take direct financial control of some of the country's 17 regional governments, which spend 40% of public money, if they fail to meet strict deficit targets.
She would like to see strict deficit controls enforced across the euro zone by the European Court of Justice, as part of the broader ceding of national power at the heart of her vision for more centralization.
These cut-price loans gave governments little incentive to reform; and while in theory the eurozone's stability and growth pact was meant to impose strict deficit limits to prevent countries going astray, the targets were repeatedly missed, including by Germany and France, and no action was taken.
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A triple-dip recession would have been a psychological jolt to consumers and raised more questions about the government's strict deficit-reduction program at a time when bad economic news has been piling up in Britain, and while policy makers all around Europe are starting to focus more on the need for growth.
Nor is it against the euro, only against excessively strict budget-deficit rules (and, by implication, against cuts at home to finance bail-outs abroad).
He has pledged to meet strict EU-set deficit reduction targets and promised major economic reform, though he has given few details.
Italy has been one of several European countries seeking a loosening of strict rules on deficits agreed to by the 12 countries using the euro.
First, they've made progress towards the "fiscal compact" demanded by European Central Bank president Mario Draghi, by promising to enshrine budgetary rules – including strict ceilings on deficits – in their constitutions, and enforce automatic punishments on eurozone members that fail to comply.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com