Mandelson could become EU Commissioner'

Support is growing in Downing Street for appointing Peter Mandelson Britain's next European Commissioner.

The former Northern Ireland Secretary would be given a mission to change voters' perceptions of Europe by fostering an emphasis on the benefits brought by membership of the EU.

It would mean a dangerous byelection for Labour in Hartlepool, but Tony Blair is said to believe it is vital to choose a commissioner who shares his view that Brussels needs to change the way it works to improve its image.

A wave of disenchantment with the EU - both in Britain and other countries - was reflected this week in the rise of protest parties such as UKIP in the European elections.

Allies of Mr Blair believe this is mainly due to the failure of Brussels to curb unnecessary regulation and explain what it does. Mr Mandelson, as a former architect of Labour's strategy to rescue its own image in the Eighties and Nineties, is seen as uniquely qualified to persuade other commissioners to change.

Support for Mr Mandelson was boosted in last week's local elections when Labour regained control of the council in Hartlepool.

The MP would have to resign his seat to move to Brussels, prompting a by-election. But one backer said: "The local election results showed it can be won."

A final decision will not be taken until Labour campaign managers have studied the forthcoming Leicester South byelection, where the party is forecast to be badly defeated. Mr Blair was today preparing for one of the most difficult EU summits of his career, with a series of negotiations over the EU constitution being left to the last minute.

He has signalled he is prepared to veto the treaty if other countries attempt to include proposals floated by the Irish for the veto to be scrapped in some tax areas.

Officials are concerned about moves to give legal force to sections of the Charter on Fundamental Rights which would give trade unions more rights to strike in sensitive industries. Britain is also under pressure to agree to compromises in the fields of criminal justice and social security, both areas where Mr Blair has promised to maintain national sovereignty.

As talks resumed last night, Foreign Secretary Jack Straw warned EU counterparts against pushing for ambitious laws in the face of the rise of protest parties such as UKIP.

"Across Europe we have seen sitting governments receive significant protest votes against them," he said in Luxembourg. "One clear message is that voters across Europe want a European Union that works better in their interests."

Whitehall officials are predicting a deal by Saturday night, but one said it was 50-50 that the entire treaty could collapse. A row over the voting rights of smaller countries is unresolved.

Another headache for Mr Blair is the appointment of a new President of the European Commission to replace Romano Prodi. He is keen to block the favourite, Guy Verhofstadt, the Belgian premier.