FT

"Just over six years after coming to power, New Labour has flunked its biggest test. Tony Blair bestrides the world when it comes to smacking down Middle Eastern tyrants and third world insurgencies. But the prime minister is unable to take Britain into Europe's economic and monetary union because Gordon Brown, the chancellor, will not allow it. Mr Blair appears unable or unwilling to confront him on the most important question facing the country at the start of the 21st century...There is, of course, no such thing as a risk-free option; but the benefits of euro membership are clear and the barriers are disappearing fast. The biggest obstacle now remaining is the chancellor, and the bogus economic tests he has used to block again British involvement in Europe's economic and monetary union."

Times

"The flaw in the chancellor's performance was that he seems to have created a state of permanent review, much as Mao Tsetung believed in permanent revolution. The compromise on which the Prime Minister appears to have insisted - that Mr Brown will review again in next year's Budget whether or not to hold a second assessment which, if passed, might lead to a referendum before the next election - creates a climate of continuing uncertainty...The chancellor is playing a waiting game with prime minister, parliament and public. He has a strategy of sorts for euro entry now. But, if good sense prevails, the next act will not be witnessed in this parliament."

Telegraph

"Thanks to Mr Brown's promise to revisit the subject in next year's Budget, and possibly rerun yesterday's assessment later in 2004, the spectre of the single currency will similarly hang over the British economy throughout the run-up to the next election. Yet the reality is that the prospect of obtaining a positive vote in a referendum on the euro has probably never been more remote, and the measures the chancellor outlined and hinted at yesterday will do little, if anything, to improve it. Nor will reassessing the question any time before the election produce a different answer. Mr Brown would have spared himself, and everyone else, a lot of trouble if he had recognised as much."

Guardian

"The central truth remains that a government which could and should have done so much more to promote British membership of the eurozone has not done so in time. On the contrary, it has taken a decision that, seen alongside UK policy over Iraq, will send a very disengaged core message to many Europeans who expected much more from Labour. In that deeds-not-words sense, all the stuff you will read today and tomorrow about a renewed British commitment to Europe is smoke and mirrors."

Independent

"It is about politics too: committing to the euro, we would at last be able to enjoy that influence in Europe that has eluded us for so long. It would help us persuade some of our European partners of the need to reform their markets and make Europe into amore outward looking less protectionist place, just as Mr Brown wants. It is, potentially, a huge prize. Yesterday, true to form, Britain said 'thanks, but not yet'."

Sun

"One thing has been decided on the euro: The indecision goes on. After six years, 18 volumes of evidence and 1.3 million words of Treasury analysis, we're no nearer a firm Yes or No. And in 10 months' time on Budget Day we've got to go through it all again. That is a humiliation for Gordon Brown, who has been forced to dance to Tony Blair's tune. Can he have done a deal in return for getting Blair's job? Or keeping his own? Only one of Brown's five economic tests has been met and that means a No for now. Brown wanted the matter to rest for at least two or three years, certainly until after the Election. But Blair, obsessed with his European dream, has made the chancellor work out how he can move the goalposts."

Mirror

"It has been a long time coming - a very, very long time - but at last the government is to come out fighting for the euro. For six years it has fumbled, prevaricated and avoided the issue. Gordon Brown hid behind his five tests and Tony Blair hid behind his chancellor. Meanwhile Britain saw influence drain away along with inward investment and jobs ... Tony Blair and Gordon Brown should get a move on. The longer we stay out, the more we lose out."

Express

"Business leaders know it's true that our economy will grow but most people don't know what's in it for them. Labour has done virtually nothing to dispel the myths. Instead, the debate has been hijacked by right wing factions which want us to quit the Union altogether. Such action would be disastrous but the government needs to lay out the arguments for greater involvement in Europe in clear terms that everyone can understand."

Mail

"As custodian of the five tests, Gordon Brown is still firmly in control. And though he is still prepared to make concessions, yesterday's statement showed what a daunting obstacle he can be to the prime minister's ambitions. If the pound is saved, it may be because he is the one minister capable of standing up to Tony Blair."