BRUSSELS:PETER MANDELSON'S dramatic return to British politics stunned Brussels yesterday, with many EU diplomats and correspondents mistaking the early morning rumours for a bad joke.
But as the news gradually sank in that the so-called "prince of darkness" had resigned as EU trade commissioner, opinions divided sharply on whether it was Europe's loss or its gain.
Advocates of free trade quickly rallied to Mandelson's support and lamented the loss of the EU executive's most vocal supporter of the "free trade" philosophy. David O'Sullivan, director general for trade in the European Commission and the man who worked most closely to Mr Mandelson on the World Trade Organisation (WTO) talks, said he was an outstanding commissioner who constantly made the case for open markets.
"His great success at the WTO talks this year was completely turning on its head the perception held in every previous trade round that Europe was to blame for the collapse of the process," said O'Sullivan. "There was no criticism of the EU this time around."
Some have interpreted Mr Mandelson's departure from Brussels just months after the WTO talks collapsed as a signal that Doha is dead. "The fact that he is returning to London clearly shows that he believes there is no longer any hope of saving the Doha round of trade negotiations," said Katinka Barysch of the Centre for European Reform.
There are also fears that the commission's centre of gravity may shift leftwards without Mr Mandelson. "There is an immediate challenge [to ensure] the financial crisis does not lead to a protectionist backlash. There is a need for people like Mandelson to fight against that," said David Woods of the Geneva-based World Trade Agenda Consultants.
During his four-year term Mr Mandelson also made powerful enemies, such as French president Nicolas Sarkozy, who blamed him for the recent No vote in the Lisbon Treaty referendum in Ireland after he failed to protect European farmers and industry.
Mr Mandelson became the bête noire of Irish farmers during his four-year term, a point acknowledged by Pádraig Walshe, president of the Irish Farmer's Association, when he said yesterday: "It's been a battle to the death with him, he had us on the ropes a few times." Non-governmental organisations such as Oxfam will shed no tears at Mr Mandelson's departure. "The commission's negotiations with the world's poorest countries under Mandelson were clearly led by trade concerns rather than development," said Oxfam's Colin Roche. "We hope his departure will allow a change in trade policy."
Mr Mandelson's impact in the trade portfolio was ultimately limited by protectionist interests in a range of fields. In Geneva in July he moved heaven and earth to clinch a deal only to be frustrated by the US and emerging economies such as India. It is this WTO failure that will ultimately define his four-year tenure in Brussels.