Mandelson Exits EU, Returns to UK Government

Friday, October 03, 2008 at 13:23

BRUSSELS (EUX.TV) — European Trade Commissioner Peter Mandelson, a controversial figure in British politics and also in international trade talks, is to return to the UK government to take up the post of business secretary.

The move is a surprise one as British Prime Minister Gordon Brown reshuffles his cabinet. Mandelson had two earlier cabinet jobs under Tony Blair.

Mandelson is expected be made Business Secretary with a seat in the House of Lords, said the BBC on its website. He is no longer an MP. Business Secretary John Hutton will replace Des Browne at Defence and Geoff Hoon will replace Ruth Kelly as Transport Secretary.

Brown’s cabinet reshuffle also is to create a new department for energy and climate changed.

In an article written for today’s Guardian newspaper, Mandelson did not refer to his imminent departure from Brussels. He wrote that the banking crisis must force political leaders to confront the need for greater European and global governance of financial markets.

Addressing the crisis, Mandelson said preserving the powerful global economic networks that have helped drive three decades of global economic growth – but which can also transit the effects of the risk-taking that have caused the current crisis – will mean a new commitment to global economic governance.

Referring to the conference that created the current institutions of global economic coordination Mandelson writes that “it is time for a Bretton Woods for the next century” – one that takes in not just Europe and the US, but emerging powers such as China.

Arguing that economic globalisation is unsustainable without effective governance, Mandelson writes: “We have nothing to gain by shutting down financial globalisation. But the networks that make up globalisation will keep transmitting the shocks along with the benefits unless we take a tougher line with excessive risk and strengthen the multilateral instruments that govern the global financial system”.

– From the EUX.TV newsroom news@eux.tv