The Daily Telegraph and The Guardian both highlight the hopes in Arab capitals for a swift resumption of the peace process under Ehud Barak's leadership.
But The Financial Times sounds a note of caution, arguing that Mr Barak said nothing during his campaign to suggest that he was willing to make the necessary compromises over territory.
The Telegraph remarks that the election itself resembled the proverbial race between the hare and the tortoise. No-one thought the plodding Barak could beat the fleet-footed Netanyahu.
But The Telegraph says the former Israeli army chief-of-staff shrugged off the taunts and appeared as a solid, unifying force - a role that made him more like a prime minister than a challenger.
Historic day for Scotland
There is also more talk of a new era in British politics after Donald Dewar's formal appointment as Scotland's First Minister by the Queen.
Among the Scottish papers, The Herald speaks of an historic day which saw the new politics given flesh and blood.
The Daily Record says it was the occasion which Mr Dewar had awaited all of his political life.
Meanwhile, The Independent says the decision to hold the ceremony at Holyrood house in Edinburgh was a mark of the Queen's determination to play an important role in the political life of Scotland following devolution.
Pressure for ground troops
Most of the papers assess the prospects for Robin Cook's visit to Washington, amid the debate over when ground troops might be used in the Kosovo crisis. The Daily Mail argues that Nato remains reluctant to deploy the means to achieve its objectives.
The Mail is highly critical of President Clinton, asking what steadfastness has the President shown, beyond his steadfast refusal to risk unpopularity by providing the right tools for the job.
The Telegraph and The Guardian both call for a display of European resolve in the face of American hesitancy.
The Independent offers a perspective of the view from the United States, saying many Americans think Tony Blair is arguing for their forces to be killed in a war that is not theirs.
The paper points out that Mr Clinton has to listen to the opposition - they control the purse strings and the right to declare war.
Nurses' 'insulting' Millennium bonus
The Express gives prominence to a report that nurses in London have been angered over the extra money they have been offered for working on Millennium night.
The bonus of £150 for those on duty on New Year's Eve has been condemned as "insulting" by union leaders.
According to The Express, the row has raised the prospect of a New Year strike threat in the NHS.
Cricket test
The news that some Asian cricket supporters are being tested on their knowledge of the game before being granted visas to enter Britain for world cup matches attracts front page attention in The Telegraph and The Guardian.
The Telegraph suggests the fans will be well up to the challenge.
It says the obsessive interest in cricket throughout the sub-continent means that many young men can show a knowledge more suited to the Mastermind quiz programme than a brief examination by an official.
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