Macroeconomics man lands top Treasury post

O’Donnell’s is the former press secretary to Tory prime minister John Major and is seen as a staunch supporter of the chancellor.

He replaces Sir Andrew Turnbull who has become cabinet secretary and head of the home civil service.

It is believed O’Donnell will follow Gordon Brown’s decision on the Euro – a decision on entry into the new currency must be made in June 2003.

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