EU trade chief returns to UK government post

Update: The architect of the UK’s successful New Labour strategy, Peter Mandelson, is set to make a triumphant return to British politics.

Mandelson, who will be elevated to the UK’s House of Lords was unexpectedly appointed as business secretary by Premier Gordon Brown in a cabinet reshuffle on Friday.

Brown’s decision to appoint Mandelson, who has twice been forced to resign from senior cabinet posts in the UK, caught the British press corps by surprise, with the Times saying that Westminster was “rocked” by the news that the two political heavyweights had ended their 15-year feud.

Mandelson will return to the post he briefly held before being forced to resign in 1998 following revelations that he accepted a free loan from millionaire Labour MP Geoffrey Robinson. Robinson was under investigation by Mandelson’s department at the time.

The move was welcomed by UK employers’ federation, the CBI who told the Financial Times that, “The department for business must have a heavyweight political big hitter at the cabinet table, and we are encouraged that Peter Mandelson is returning to this role".

Despite the plaudits, Brown’s decision to reinstate Mandelson into a senior government position will be seen as a risky move, considering their previous animosity to each other, stemming from Mandelson’s decision to support Tony Blair over Brown in the 1994 Labour leadership contest.

But press reports on Friday confirmed that Mandelson has been involved in talks with Brown about how to tackle the current financial turmoil in the country, and had advised the premier on his recent speech to the Labour party conference.

The European commission was also caught off-guard by the move, with the executive’s spokesperson service reluctant to comment on the appointment, saying only that Mandelson had not yet resigned and would be only allowed to leave his job as commissioner for trade once a British successor had been nominated.

However, in a press release late Friday afternoon, the commission confirmed that Mandelson had handed in his resignation to commission president José Manuel Barroso.

As the news of the UK reshuffle broke, Baroness Ashton of Upholland, the Labour leader in the House of Lords, quickly became the favourite to succeed Mandelson.

The early speculation was finally confirmed by the European commission.

“Following consultations with president Barroso, the prime minister of the United Kingdom has nominated Baroness Ashton of Upholland as successor to Mr Mandelson.”

“President Barroso has subsequently written to the president of the Council and to the President of the European parliament, transmitting the resignation of Mr Mandelson as a member of the European commission, and his agreement with the nomination of Baroness Ashton of Upholland as a member of the commission.”

“President Barroso has decided to attribute the trade portfolio to Baroness Ashton of Upholland.”

Commenting on the news UK Liberal MEP Graham Watson, the leader of the European parliament’s ALDE group said, “Peter Mandelson has handled a difficult job with verve and vigour and deserves more credit than he customarily receives. I wish his successor in the trade portfolio every fortitude.”

Fellow Liberal MEP Andrew Duff added, “We have enjoyed a fruitful relationship with Peter since his appointment in 2004. He will be missed in Brussels but it will be good to see a federalist back at the heart of the British government.”

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