Writing in today's Mail, Andrew Rawnsley says that the decision means the tensions between Downing Street and the Treasury will continue.

"Tony Blair's impatience to take Britain into the single currency is undimmed; Gordon Brown's stubborn veto over the decision is undiminished. The dual monarchs of Downing Street will continue to duel," he says.

In today's Telegraph, Rachel Sylvester and Toby Helm argue that "in the end, prime ministers always have the last word", adding: "If he really loses patience over the next 12 months, Mr Blair has the power to sack his chancellor. It remains to be seen whether he will do so."

The FT's political editor, James Blitz, warns that there is a "possibility that the rivalry between Tony Blair and Gordon Brown over the euro will explode once and for all."

His counterpart at the Independent, Andrew Grice, says yesterday was "one more chapter in the saga of Tony and Gordon". He concludes: "There is still scope for a Hollywood ending to the Blair-Brown story. Mr Blair calls his referendum a year after the next election and wins it with Mr Brown's backing. Then he departs and the chancellor finally becomes prime minister. It could well happen."

The Sun's political editor, Trevor Kavanagh, writes: "The chancellor has no intention of releasing his grip on the British economy until it is prised out of his hands with a crowbar."

In the Guardian, Michael White and Patrick Wintour say that "the core relationship remains between the principals, probably closer - and more equal - than any PM and chancellor ever".

Peter Riddell of the Times, says: "The passage of time and all those meetings between the prime minister and the chancellor have produced a shift.

"The Blairites believe that Mr Brown has moved from studied neutrality to a more positive attitude, and to a plan which makes entry a realistic, rather than a remote possibility. And the gap between a fresh assessment could be just a matter of months."