Eurosceptics accused Mr Mandelson of showing 'arrogant contempt' for the voters. They said his remarks proved New Labour was railroading Britain into a federal superstate.
It was a clumsy gaffe for the twice-disgraced politician to make, especially as Tony Blair got into trouble on the same issue only five months ago. Asked what would happen if Britain rejected the constitution the Premier said we would be in 'the same position as Ireland'. After it was pointed out that Dublin forced its electorate to vote again, Mr Blair insisted that he would abide by the voters' decision.

Mr Mandelson's revival of the spectre of repeated votes will infuriate Cabinet figures such as John Prescott, Jack Straw and Charles Clarke, who urged Mr Blair not to send the former Trade and Ulster Secretary, to Brussels. Senior Tories were scathing. Foreign affairs spokesman Michael Ancram said: 'Peter Mandelson has wasted no time in returning to his traditional contempt for the democratic views of the British people. 'If, as we expect, there is a "no" vote in the referendum, he must accept that is the end of this dangerous constitution.'
Neil O'Brien of the anti-constitution Vote No campaign said Mr Mandelson's remarks were 'an example of the arrogance that is turning voters off the EU'.

Mr Mandelson was preparing to attend a 'bonding session' with the other 24 new commissioners on his first full day in the Belgian capital when he was asked in a BBC interview what the consequences would be if the British or French people voted to reject the European constitution.
He replied: 'That will spark a major crisis. I don't think it will be insoluble. What it will mean is we will have to go back, look at the reasons for the rejection, understand why the treaty has not been embraced by the public and address those concerns. It doesn't mean to say abandoning that project.'
 

In a blow to France and Germany -- and in a boost to Tony Blair -- the incoming European commission president, Jose Manuel Barroso, declared that he was relying on a senior team of "reform-minded commissioners" to push through the changes known as the "Lisbon agenda".

Unveiling his team in Brussels, the former Portuguese prime minister said: "We must reinvigorate the Lisbon strategy, which aims to make Europe the world's most competitive economy. I will personally chair a group of commissioners who will seek to boost the reform process and give new impetus to Europe's economy."
His remarks were warmly welcomed in Britain, where the chancellor, Gordon Brown, has set economic reform as an unofficial "sixth test" for British membership of the euro.

The core group of commissioners is made up of Mr Mandelson, who wins the coveted post of trade and international competitiveness; Charlie McCreevy, the former Irish finance minister who takes charge of the internal market; and Neelie Kroes-Smit, the Dutch transport expert who takes the post that deals with competition. Günter Verheugen, the German commission vice-president, who takes over at enterprise and industry, is the only member of the inner circle from outside the "Lisbon agenda" group. But British officials say he is personally committed to reform.

Mr Mandelson,who was twice forced to resign from the cabinet in Labour's first term, warmly welcomed his new job, which will make him one of the most powerful figures in the commission. He will travel the world negotiating Europe's trade deals with the US, Japan and the WTO.

Making clear that he would be forcing through change, he said: "Europe will continue to benefit from globalisation as long as trade and investment are further liberalised and if Europe preserves its long-term competitiveness, its capacity for innovation and its social market economy. We need to sustain a win-win, multilateral process of negotiation."

While Britain was delighted, France and Germany will take stock after they failed on a series of fronts. Paris and Berlin initially failed to appoint Guy Verhofstadt, the Belgian prime minister, as commission president after overplaying their hands at the recent European council meeting. Germany secured a key portfolio, but not the "super commissioner" encompassing all the economic jobs which Gerhard Schröder had lobbied for. France suffered a blow as it was awarded the relatively lowly transport portfolio.

Mr Mandelson can expect a rough ride from France when the WTO talks resume. He will have to contend with Jacques Chirac, who is resisting pressure to end EU farm subsidies, which developing countries say deny them fair access to European markets.
Malcolm Bruce, the Liberal Democrat trade and industry spokesman, said: "The real test for Mr Mandelson is the extent to which he is prepared to broker a breakthrough in the trade talks. Poor countries need access to markets and the US must be challenged on protectionism. Peter Mandelson must be equal to both these tasks."
 

"It was not until Wednesday night that we heard the news," one senior British figure said. "Doing this a week early shows how tough Barroso is -- I do not know of any occasion where he has been frustrated." The scale of Mr Barroso's achievement was apparent when the smiling former Maoist stood up at a Brussels press conference yesterday to announce how he was distributing the 24 commission posts, which carry a salary of £142,000. Weeks after France and Germany tried to impose their own plans for the next commission, Mr Barroso declared that he was placing "reform-minded commissioners" in the key economic posts.

In the jargon of Europe this hailed an end to the days when France and Germany, the two original driving forces behind the EU, could expect their wishes to be met. The key posts went, in the words of one British official, to "like-minded people".

The four senior figures are Peter Mandelson, who takes over trade; Charlie McCreevy, the avuncular racing fanatic and former Irish finance minister who takes charge of the internal market; Neelie Kroes-Smit, the Dutch transport expert, who takes over at competition; and Günter Verheugen, the commission vice-president, who takes over at enterprise and industry - and is the only figure from what Donald Rumsfeld would call "old Europe" at the top table. But he is said to be personally committed to the "Lisbon agenda" of economic reforms.

Alasdair Murray, of the Centre for European Reform, described the appointments as a major setback for Jacques Chirac and Gerhard Schröder, who had alienated their European counterparts with heavy-handed tactics. Mr Chirac pushed hard for Guy Verhofstadt, the Belgian prime minister, to be made commission president, while Mr Schröder tried to win a "super-commissioner" post encompassing the four economic portfolios.

"I think France and Germany boxed Barroso in a way that he could never have given them what they wanted," Mr Murray said. "He would have been perceived as being weak from day one. The Germans, in particular, massively over-played their hand. Verheugen is a second-term commissioner from a major member state. He was always going to get a big post." He added: "They tried to double-guess Barroso and haven't got anything like what they wanted." As he suns himself on the Indian Ocean island of Réunion, Mr Chirac will be left to reflect that Britain emerged as one of the main winners as the "Lisbon agenda" receives a big boost. France fared badly when Jacques Barrot, at 76 the eldest commissioner, landed the mid-ranking job of transport. Ulrike Guérot, director of foreign policy at the German Marshall Fund in Berlin, said Tony Blair should be delighted. "The Brits needed an important political dossier. It adds credibility to the EU's position internationally and it's an important dossier in terms of the transatlantic relationship."

Lest the British crow too much, some commentators doubt whether Mr Barroso sees economic reform in the same radical terms as Mr Blair and Mr Mandelson. Mr Barroso himself stresses the need to protect the European social model -- code for workers' protection. Kirsty Hughes, a visiting fellow at the LSE and former senior advisor to the commission, said: "Barroso is very much a continental European and the British interpretation of the Lisbon agenda is very different from his. It's not about liberalising."

Mr Barroso's strong start is likely to raise expectations that he will be a strong commission president, unlike the lacklustre incumbents of recent years. Romano Prodi, who stands down this autumn, appeared to be more interested in unseating Silvio Berlusconi as Italian prime minister. Jacques Santer, the bland former Luxembourg prime minister, never recovered from financial scandals in the commission.
Eurosceptics will fear that a strong commission president could lead to a repeat of the era of Jacques Delors, the French commission president who horrified Margaret Thatcher with his attempts to forge an "ever closer union".

Downing Street believes Mr Barroso will be a far more sensitive figure. Elected as Portugal's prime minister just over three years ago, he made an immediate impression in Brussels and Strasbourg with his language skills. He speaks French and English as fluently as his native Portuguese.
When he appeared before the European parliament, which had the right to veto his appointment, Mr Barroso charmed his audience, which included many MEPs who were highly sceptical. On his weakest point -- his decision to host Mr Blair and George Bush for a council of war in the Azores on the eve of the Iraq conflict -- Mr Barroso skilfully won round his audience.
"There are magnificent things that exist in the US as well as some fairly horrific things," he declared in remarks which ensured he comfortably won the parliament's support. "I hate their arrogance, I hate their unilateralism." His record as prime minister shows that he is a pragmatist.