UK News

Is powerful Mandy talking up the euro?

When Prime Minister Gordon Brown reshuffled his cabinet last week, fending off a challenge to his authority, a significant outcome was the creation of one of the most powerful ministerial jobs Britain has seen in years.

Peter Mandelson, a former European commissioner who has twice served in British governments in the past and twice been forced to resign, was reconfirmed as secretary of state for business, but also given greatly expanded authorities that make him a powerful if unofficial number two to Brown.

Much fun has been made of Mandelson’s new title, which because he has been elevated to the House of Lords in order to serve in the cabinet now officially reads as:

A big beast prowls Westminster again

Gordon Brown was always expected to reshuffle his cabinet this week, but Friday’s series of chessboard moves were more dramatic than any commentators were predicting.

The most interesting shift is that of Peter Mandelson, the EU trade commissioner, back to Britain to take on the role of business secretary in the cabinet, probably with a focus on managing the fallout from the economic crisis.

Mandelson was for years an arch-enemy of Brown’s in former Prime Minister Tony Blair’s cabinet. The two rarely saw eye-to-eye and Brown’s deputies were open in making clear their dislike of Mandelson’s rival power-base to Brown’s at the Treasury.

A devoted-Blairite, Mandelson was dubbed the “Prince of Darkness” for his behind-the-scenes manoeuvring.

Brown’s decision to bring him back into government probably reflects several things: one, an acknowledgement that Mandelson is a skilled, confident politician who can get the job done. At a time of crisis, it says “better to bury the hatchet and get the best people on board” rather than keeping him isolated because of long-held grudges.

It also may reflect a desire to bring someone who is close to the levers of power in Brussels and the European Union back into the fold so that Britain is better positioned to handle its European ties at a time of global crisis, while also maintaining its close coordination with the United States.

The risk for Brown is that Mandelson ends up becoming an alternative power centre within the cabinet again. In many respects he outranks every other member of the cabinet for skills and experience.