Blair 'could stay in power to sort out EU crisis'

Tony Blair could carry on as British Prime Minister for another two to three years, now that plans for a European referendum have been dropped, his old ally Peter Mandelson claimed today.

Mr Mandelson, now Britain’s EU commissioner, said that the crisis facing the EU following the rejection of the new constitution by French and Dutch voters, would provide Mr Blair with a fresh challenge.

It had been widely expected that Mr Blair would stand down after Britain’s referendum on the constitutional treaty, due to take place early next year, to make way for Chancellor Gordon Brown.

However, in the wake of the French and Dutch “no” votes, Foreign Secretary Jack Straw will announce tomorrow that Britain’s referendum plans are to be put on indefinite hold.

Mr Mandelson said that Mr Blair could now play a leading role in sorting out the tangle in which the EU was now embroiled.

“I don’t think what’s happened in Europe this week will have any direct impact whatsoever. If anything, it gives him a fresh calling,” he said in an interview to be broadcast today on ITV1’s Jonathan Dimbleby programme.

“What he’s got to do is help other European member states and heads of government come to terms with what’s happened, understand, realise how Europe’s got to move to a different place if it’s going to overcome that malaise about Europe that exists amongst the public.

“I think he can help do that, so I think that he’s got a great contribution to make.

“I hope that as part of his legacy when eventually he does step down as Prime Minister towards the end of this parliament, he will be able to look back on the next two to three years and say: ‘I helped Europe change and mend its direction, re-build public confidence and trust in the European project in a way that seems relevant to us and our daily lives,’ and that’s what I’d like to see him do.”

His comments are likely to infuriate his long-time rival, Gordon Brown. Although Mr Blair has said that he intends to serve a full third term, most MPs expect him to stand down long before then.

Mr Mandelson urged the British government not to rush to declare the constitution dead, but instead to hold their fire until the crunch EU summit in Brussels on June 16.

Nevertheless, he acknowledged it was unrealistic to expect countries like Britain, which are due to hold referendums on the treaty, to go ahead with them until they knew whether there would be fresh votes in France and the Netherlands.

“Until that question is answered, I don’t think it’s reasonable to expect all the other member states simply to go ahead regardless of what’s happened this week,” he said.

He said that he would now like to see the member states put the whole ratification process on ice until the end of the year while they considered the best way forward.

“I would like them to consider whether it is better to preserve the treaty by pushing the pause button now and coming back to it at a later stage, rather than taking a precipitate decision either way,” he said.

“I think that the best outcome from the council meeting, the week after this, is, after a discussion, people say: 'Look, we need to reflect on this further and we’re going to come back to this at the end of the year,' but in the meantime each member state needs to consider in its own national context what is best to do.”