EU comeback for Blair ally
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LONDON, England (CNN) -- Prime Minister Tony Blair has tapped his old ally and European enthusiast Peter Mandelson -- who twice resigned under a cloud from ministerial posts -- as Britain's new EU commissioner.
"The prime minister has today nominated... Peter Mandelson as the United Kingdom's next European commissioner," a government spokesman said.
A Downing Street spokesman said Blair spoke to Commission President Jose Manuel Durao Barosso earlier Friday to pass on the nomination "and received a positive response."
Mandelson, 50, is expected to take up his £145,000-a-year ($270,000 p.a.) plus expenses post on November 1, once the college of commissioners has been approved by the European Parliament.
He replaces Britain's two current commissioners -- Neil Kinnock and Chris Patten. Britain's allocation has been cut to one commissioner with the expansion of Europe to 25 nations.
Blair's appointment means Mandelson must resign as MP for Hartlepool in northern England, and a by-election will be held to fill his seat which is likely to bring a fierce contest.
The appointment ends days of speculation and rumor at Westminster about the political future of Mandelson, who twice resigned from the Cabinet -- once as trade secretary and once as Northern Ireland secretary.
He quit as secretary for Trade and Industry in 1998 after admitting he had failed to disclose a large home loan from ex-minister and Labour donor Geoffrey Robinson.
He was forced out again in January 2001 as the government's Northern Ireland secretary after allegations he had intervened in the citizenship application of Indian multi-millionnaire Srichand Hinduja, who with his brother had given money to the government's Millennium Dome project.
Mandelson is a controversial figure in Labour Party politics in Britain.
A former TV producer who became a party communications chief, he is widely credited as masterminding the party's change of image to "New Labour" that swept Blair to power in 1997.
He is expected to be a pivotal 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 European politicians who would like to see Britain playing a more "inside" role in Europe.
"The job of European commissioner is a vitally important position for this country," Blair said in a statement.
"Europe is Britain's best economic market. How Europe develops, especially a Europe of 25, will be crucial for the future of Britain.
"This is why we need the very best person representing Britain in Europe."
Conservative party spokesman Liam Fox told the UK's Press Association: "Once again, the Prime Minister has put his friends in the Labour Party ahead of the country.
"Peter Mandelson will never stand up for the interests of Britain in Europe because he has always argued the case for Europe in Britain.
"The EU needs commissioners who will actually tackle the appalling problem of fraud and corruption in the EU. Peter Mandelson is unlikely to inspire public confidence in their ability to deal with this problem."
Mandelson later acknowledged that he was "unpalatable" to some members of the Labour Party, but said that reports of his unpopularity were overblown.
He told Sky TV he hoped the public would respond to his appointment by saying: "Love him or loathe him, he is a strong guy. We need someone to bat for Britain in Brussels. Give him a chance."
Analysts say it is a sign of Blair's renewed confidence that he feels able to bring such a controversial figure back from the political wilderness once more.
Only weeks earlier, Blair faced speculation about how long he would last as the issue of Iraq battered his ratings.
But Blair has had a good week in Britain, celebrating 10 years as leader of the Labour Party by successfully facing down his House of Commons critics on Iraq. (Buoyant Blair)