Leadership tensions in Australia

Prime Minister John Howard today insisted that he and Treasurer Peter Costello were still a team, despite an apparent leadership tussle that could undermine a decade of economic growth in Australia.

Howard and Costello met at a federal Cabinet meeting in Sydney today – their first meeting since Costello accused the prime minister of breaking a promise he allegedly made 12 years ago to hand over control of the dominant Liberal Party after one and a half terms.