The people of Sweden have rejected the euro following an "emotionally charged" referendum.

The anti-euro camp in Sweden won the day by a large margin - with 56.2 per cent trumping the 41.8 per cent recorded for the "yes" supporters.

Swedish prime minister Goran Persson said: "I think we read the opinion polls too optimistically."

The poll, which took place following the murder of foreign minister Anna Lindh, is likely to act as a break on the British pro-euro campaign.

The Guardian says Tony Blair's hopes of an early poll have been "dashed by [the] Swedes".

Today's Telegraph reports meanwhile that the prime minister is coming under increasing pressure to drop his hardline stance against a referendum on the EU constitution.

Despite the Swedish setback pro-Europeans last night welcomed Estonia's vote in favour of EU membership.