LONDON, Oct 3: EU trade commissioner Peter Mandelson sensationally returned to the British government on Friday in what he admitted was an unexpected comeback for a former enemy of Prime Minister Gordon Brown.

Mandelson acknowledged outside Brown’s Downing Street residence that his new post “was certainly not what I was expecting” but said he was proud to be a minister for a third time.

The appointment of Mandelson to the post of business minister was the biggest surprise as Brown shuffled his pack more than expected.

Brown and Mandelson fell out in 1994 when the latter backed Tony Blair as Labour leader, creating divisions within the party that remain to this day.

On Friday, however, Mandelson praised Brown’s leadership during the economic crisis, saying he had done an “exceptionally good job in what are very, very challenging conditions.” He said that while the pair had had their “ups and downs... we’ve already known each other for over 20 years, and originally we worked very well together.”

Announcing the reshuffle, Brown said Mandelson was “brilliant” and that “serious people are needed for serious times.”

“If you’ve got someone with unrivalled experience in international business issues ... then if the British government can benefit from that, then it’s the right decision,” Brown said.

Mandelson will replace Business Secretary John Hutton, who will move to replace Defence Secretary Des Browne, overseeing Britain’s troops in Iraq and Afghanistan.

As expected, Brown left the key positions of finance minister Alistair Darling and Foreign Secretary David Miliband unchanged, but gave other party veterans new duties.

Geoff Hoon, defence chief when Britain joined the 2003 US-led invasion of Iraq, moves from chief whip to be transport minister and former foreign minister Margarett Beckett becomes housing minister.

There was also a new role for a rising star of the government, David Miliband’s brother Ed, who will head a new Energy and Climate Change ministry.

The reshuffle is the latest stage in Brown’s fightback after he fended off an attempt to trigger a leadership election from disgruntled lawmakers within his own party.

Mandelson is a divisive figure who masterminded Labour’s image change to “New Labour” ahead of their landslide victory at the 1997 general election.

He forged a close relationship with Blair but was forced to resign from two cabinet jobs amid scandals, only to resurrect his career each time.—AFP