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Mandelson reveals plan to retire from Brussels, then puts the knife into Brown

By Colin Brown, Ben Russell and Stephen Castle in Brussels
Friday, 23 March 2007

He once said he was a fighter not a quitter, but Peter Mandelson announced yesterday that he was stepping down at the end of his term as Britain's trade commissioner in Europe.

One of the architects of New Labour, Mr Mandelson, 53, surprised ministers by announcing he will be quitting when his five-year term ends in 2009 and delivering a thinly veiled attack on Gordon Brown, his long-term political foe.

Many Labour MPs were speculating he had decided to jump before he was pushed by Mr Brown, the Prime Minister-in-waiting.

Mr Mandelson announced he was stepping down when questioned about whether he would get the sack once the Chancellor came into power. In a sideswipe at Mr Brown, Mr Mandelson said: "I don't know whether this is going to come as a disappointment to him, but he can't actually fire me.

"So like it or not, I'm afraid he will have to accept me as commissioner until November 2009. But I will not be seeking a nomination for a further term after that."

Mr Brown was still warm with the afterglow of his Budget "coup'' with a 2p tax cut but Mr Mandelson carefully threw a bucket of cold water over the Chancellor's approach to Europe.

Damning him with faint praise, he said Mr Brown ­ who is notorious for refusing to engage in the clubbable atmosphere at summits ­ "has the very real potential to be a constructive European ... but it takes working at."

He added acidly that Mr Brown ­ "should he become Prime Minister" ­ would get on as easily with European leaders as Tony Blair providing he worked at "bonding" with his EU partners.

"But it does require time, it does require effort, and if you want to influence people in Europe, you have to bring a sense of European conviction to the argument that you are making."

Mr Mandelson raised eyebrows at Westminster by claiming he was unaware of the remarks made this week by Lord Turnbull, the former cabinet secretary, that the Chancellor exhibited "Stalinist ruthlessness" towards his colleagues. Mr Mandelson said he was too busy in South-east Asia, but would "catch up with interest" on the details.

That sounded to many former colleagues like a characteristic piece of diplomatic fast footwork by Mr Mandelson, dubbed the Prince of Darkness for his reputation for Machiavellian plotting.

His remarks also fuelled the Westminster rumour mill that the pro-European Blairites are increasingly desperate to field a challenger to stand against Mr Brown, who was the obstacle to their early hopes of Britain joining the euro. The Chancellor has never forgiven Mr Mandelson for the way he was manoeuvred out of running against Mr Blair for the leadership at their Granita dinner in 1994. Mr Blair had to refer to him as "Bobby" in his leadership victory speech, to avoid upsetting Mr Brown by admitting Mr Mandelson was secretly on his campaign team.

Their feud has continued unabated. According to Brussels sources, throughout Mr Mandelson's brokering of the important World Trade Organisation negotiations with the US, Mr Mandelson and the Chancellor are said to have hardly exchanged a single word.

Mr Mandelson gives up a salary of ¤19,000 (£12,900) a month plus at least ¤2,000 in allowances, a chauffeur-driven Jaguar and first-class air travel.

Partly because of his reputation for the high life, Mr Mandelson opted for a small apartment in Brussels, though he spends much of is time either travelling, or in London for weekends.

Though he enjoys one of the most important jobs in the European Commission, that also has drawbacks. One is the need to travel almost constantly. The other is that fact that whether he is judged a success or failure depends largely on whether a world trade deal can be struck. That is hardly in Mr Mandelson's control since it requires the co-operation of the US.

A former television producer for Weekend World when it was presented by Brian Walden, Mr Mandelson was responsible for re-branding Labour under Neil Kinnock with the red rose image.

After Mr Blair was swept to power, he was promoted to the Cabinet, but was forced to resign twice ­ in December 1998 over a loan from fellow minister Geoffrey Robinson for a house in Notting Hill, and in 2001 over misleading statements about a passport application by Srichand Hinduja, an Indian billlionaire.

His retirement raises the prospect of whether Mr Blair will reward his loyal friend with a peerage in his resignation honours list.

As to the future, Mr Mandelson's predecessor as Trade Commissioner, Pascal Lamy, now heads the World Trade Organisation. The man M. Lamy succeeded, Leon Brittan, went to the House of Lords and worked in business.

What Mandelson said... and what he meant

Mandelson said: "He can't actually fire me."

He meant: I'll enjoy the next two years, then jump before he pushes me.

Mandelson said: "I think he has the very real potential to be a constructive European but it takes working at."

He meant: Gordon treats European colleagues like the Cabinet: with contempt.

Mandelson said: "As prime minister you are at the heart of a web... which requires a great deal of personal attention and bonding. I see no reason why he should not be able to do that in the same way that Tony Blair has."

He meant: I can't wait to see him trying to "bond" with his European partners.

Mandelson said: "I think that when people see [European conviction] in Gordon Brown - should he become prime minister - they will find him as easy to work with as Tony."

He meant: I'd love to see his face if Clarke stands.

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