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LONDON (reuters) - Prime Minister Tony Blair has chosen his old friend and European enthusiast Peter Mandelson to become the new European Commissioner, says a government source.

Blair will confirm the appointment on Friday, and Mandelson must resign his parliament seat, the source told Reuters on Thursday.

That would be a remarkable comeback for a politician who helped mastermind the Labour Party's 1997 election win but was later twice forced out of ministerial posts amid scandals.

London is expected to press Brussels to give Mandelson the job of running the EU's single market directorate, covering issues from tax harmonisation to opening up financial services.

He is also sure to be a key figure in a referendum Blair has promised, probably in 2006, on the EU constitution.

Long a supporter of UK membership of the euro, Mandelson's appointment will please Europe but may bring a domestic backlash due to his controversial career, analysts said.

"Whatever you think of Peter Mandelson, he is a heavyweight politician and that will go down well in Europe," said Charles Grant, director of the Centre for European Reform in London.

"If you send a big figure you get a bigger and better job, which promotes Britain's interests. It is also seen as a token of how seriously you take the European Union."

Mandelson's departure will force an election for his parliamententary seat in northern England, raising the possibility of another embarrassing defeat for Blair.

HELPED TRANSFORM LABOUR

Mandelson won the seat with a majority of nearly 15,000 at the 2001 general election but last week Labour lost one supposedly safe seat, and nearly another, in two by-elections.

Blair's spokesman said on Thursday the prime minister had to observe the courtesies of informing new EU Commission President Jose Manuel Durao Barroso of his decision before going public.

In an interview with BBC TV, Barroso said he had not been approached yet. "I hope the prime minister of Britain presents me good names because I think it is very important for Europe to have the best in the European Commission," he added.

Mandelson was one of the key architects of Labour's transformation before it returned to power in 1997. But in 2001 he was forced out as Northern Ireland Secretary over claims he backed passport applications of two Indian billionaire brothers after they agreed to fund London's ill-fated Millennium Dome.

The first time he quit, in December 1998, came after he failed to declare a 373,000 pound loan from a fellow government minister, which he used to buy a smart London house.

"No one doubts Peter Mandelson's abilities or his commitment to Europe, but the nomination of a man who has twice been forced out of the cabinet would be a gift to (British) eurosceptics," said Chris Davies, Liberal Democrats' MEP leader.

Even in Brussels, government sources say Mandelson, 50, is likely to play a behind-the-scenes role in Blair's campaign for a third term in power at next year's expected election.

Grant said his competence would help Blair in a referendum on the EU constitution while his unpopularity would hinder that.

"He is one of the very few senior figures in the Labour Party who actually cares about the European Union and where it's going. He makes speeches on it, he writes pamphlets. How many Labour figures do that?" he added.

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*&%$%$%^%££$.......%$%$£$%%%^$%$£....aaaaaahhhhh f%%$£$%%$$£$

bastard ....

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well ...its was on C4 news with John Snow ... stating that he was well respected , and that it was just media hype that the IT was hated within the party ...and that he was looking forward to being at the centre of Euro policy making ......

for ***** sake ........

I cannot believe the front ....and brass neck of B'liar ......

_39184545_blair_laugh150.jpg

the joke is on us .........!

I wonder what he has on B'liar .....?

Did they rhumba....?

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It is said that Peter Mandelson never endeared himself to his Hartlepool constituents after a story ­ perhaps apocryphal ­ emerged that he confused the fish and chip shop side order of mushy peas with guacamole, a rather more metropolitan delicacy.
Independent

Looks like Mr daytime-silk is going to run in the resultant bye election against labours 13000 safe seat majority ....I never really understood how Mandy got re elected there anyway .........

Well..... one election to watch with a beer , tacos, and mushey pea dip

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This part of the forum really needs to be dropped.

Your political views mean absolutely nothing to me,Tankus...Tell someone who cares about your,frankly obsessed and odd,political crap.

Better still,join your equals at the Monster raving looney party!!

You'll be telling us next that "B'liar" is a Reptillian shape-shifter....a member of the Illuminati....Pffffft!

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Is the illuminati in tomb raider??

Anyway i would just like to point out that that git bliar has got a face you would never get tired of smacking or throwing darts at or hitting with a coke bottle or .... the list goes on

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Tell someone who cares about your,frankly obsessed and odd,political crap.

Quite a number of the members who post on here share the same political views.

We get the same purile name calling of Blair, from the large section of Tory voters on here. They can't accept they will never return to Government as long as they stick to the policies of Thatcher and the far right.

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AS SC says what is the alternative, the Tories: wouldn't trust them with my bin. Thatcher and her cronies did more for the SNP than anything I can remember,

Libdem: to many bleeding heart PC type people, but I have to admit, this is who I have been voting, why? In Glasgow, Maryhill Labour always win and it's a case of voting the lesser of the evils and anybody that is not Labour/Tories, it's more of a protest vote as opposed to actually thinking they would do any better. I really don't have much faith in any of them but you should always use you vote, even if only as a protest vote

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I really don't have much faith in any of them but you should always use you vote, even if only as a protest vote

I've always believed that too but I may be forced to abstain next election time - unless there is a 'none of the above' option on the ballot slip.

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Shirl

Your political views mean absolutely nothing to me,Tankus...Tell someone who cares about your,frankly obsessed and odd,political crap.

Well......... I'm glad you care enough to read and comment ....

arf arf

I don't giva monkeys what you think either .!.... but I would not want to censor it , and wouldn't it be boring if well all had the same viewpoint .......!

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Hurdy

forced to abstain next election time

I think its normal Tory voting abstainers that gave b'liar his large majority in the last elections ....what was it ...about 63% turnout ...just how low will it go ...? the lower the percentage , the more radical our politics will get ,with policies that don't represent what this country wants or needs ....

I had thought about the Liberals due to their stance on Iraq , but it comes with considerable Euro baggage .....

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From the Telegraph Ive posted in full as its a registration site , but it looks as though Mandys posting was considered a soft option , as it could have been a cabinet position.....amazing...!

Tony Blair planned to bring Peter Mandelson back into his Cabinet to overhaul welfare and pensions policy, but was thwarted at the last minute by a fierce revolt among senior ministers.

The Prime Minister's plan to make Mr Mandelson Work and Pensions Secretary - replacing Andrew Smith - would have triggered an extensive Cabinet reshuffle, with Geoff Hoon, the Defence Secretary, being nominated as Britain's new European Commissioner instead of Mr Mandelson.  

Mr Blair backed down, however, after protests led by John Prescott, the Deputy Prime Minister, and Jack Straw, the Foreign Secretary. The row raged for several days last week. Mr Mandelson was bitterly disappointed when he heard he was not to make a second return to the Cabinet. His last-minute prevarication about whether to accept the Brussels job on Thursday night caused Mr Blair to abandon his planned reshuffle, which his aides did not want to rush through on Friday.

The Telegraph has learned that, as late as Wednesday, a full list of the proposed ministerial changes had been sent from Downing Street to senior officials at the Cabinet Office.

The blueprint had as its starting point Mr Mandelson joining the Cabinet as Work and Pensions Secretary, taking responsibility for Labour's stalled "welfare revolution" - setting the scene for policy clashes with his old foe Gordon Brown, the Chancellor.

Mr Smith, the current Work and Pensions Secretary, risked losing his Cabinet seat altogether in the planned shake-up. Mr Hoon had indicated to Mr Blair that he was ready to go to Brussels if such a move were required.

The plan would also have seen Ian McCartney, the Labour Party chairman, demoted to a ministerial role at the Cabinet Office. However, Mr Prescott, a loyal backer of Mr McCartney, successfully resisted this move. Mr Blair had planned to give the party chairmanship to Tessa Jowell, the Culture Secretary. However, she is understood to have turned down the post - further complicating matters.

Paul Boateng, the Treasury Chief Secretary, was another minister who had faced demotion or dismissal.

Mr Mandelson had been hoping for a third Cabinet post following previous stints at the Department of Trade and the Northern Ireland Office, both of which ended in his resignation. He is known to have had a low opinion of Mr Smith's abilities and to have previously criticised the Department for Work and Pensions for being a "wholly owned subsidiary of the Treasury". He has also described welfare reform - which was at the top of Labour's agenda when it came to power in 1997 - as "the dog that didn't bark".

The Mandelson comeback plan was strongly resisted by several Cabinet members, led by Mr Prescott and Mr Straw, who felt that such a move risked greatly damaging the Government.

Charles Clarke, the Education Secretary, was said to have objected to any new role for Mr Mandelson - either in the Government or in Brussels. On Thursday, Mr Blair finally bowed to the pressure and offered his old ally the Brussels post. Mr Mandelson asked for 24 hours to consider the offer, by which time it was too late for Mr Blair to reshuffle his Cabinet.

Before departing for Barbados on a family holiday, Mr Blair warned Labour activists yesterday that infighting threatened the party's chances of winning a third term in government.

"We have that possibility within our grasp. We have come through an immensely difficult time," he said in a speech to Labour's National Policy Forum at Warwick University. "We have given up the luxury of criticism for the obligation of decision. But with the pain has come the gain."

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