The dust settles...

Tonight the drama that was played out between Howard and Costello over the past few days seems to have finally come to an end. Costello has let Howard know his preference will be to take control of the Coalition prior to the next election. Howard has given no guarantee (at least not which will known to the public) that this will be the case, but has left Costello in the position of Treasurer regardless.

This has been the best outcome possible for Costello, considering that Howard stepping aside was never going to be an option. He has regained ground from when Howard walked all over him in 2003 - Howard's motherhood statement that he 'will stay as long as Australia and the Liberal Party wanted him to' devastated Costello's ambitions. Costello has now returned to a position of power within the leadership picture - Howard now is under pressure to reveal his plans or make a deal with Costello. He know realises he cannot push Costello around without a hostile reaction that will risk damaging his legacy, or even see a disgraceful exit at the hands of a party room vote (unlikely as it may be).

Costello has to be happy with the outcome - he know longer has to beg and plead, and Howard no longer holds all the cards. Tonight Howard will be considering his future, and how he wishes his legacy to conclude. My expectation is that we will see Howard commit to leading the Liberal Party to the next election publicly, and a private commitment to the handover of power to Costello the following year.