Lord Mandelson faces losing his EU pension off the back of a fresh inquiry into his links to the prolific paedophile Jeffrey Epstein.
The European Commission has asked its anti-fraud office to look into whether the disgraced peer tipped off the paedophile about a multibillion-euro bailout to save the currency in 2010.
If found guilty of misconduct, the former Labour cabinet minister could be stripped of his entitled £31,000 a year pension for serving as EU commissioner for trade between 2004 and 2008.
The commission says the index-linked payments are dependent on good behaviour clauses, which apply “both during and after” an individual’s term of office - which, if the allegations are proven, Mandelson could be in breach of.
Peter Mandelson was arrested on Monday | GB NEWSThe slew of inquiries come after Lord Mandelson was featured in the so-called Epstein files and arrested earlier this week under suspicion of misconduct in public office.
A European Anti-Fraud Office (Olaf) spokesman said: “Given the circumstances, and the significant amount of documents made available publicly, the European Commission also asked Olaf on Feb 18 to look into the matter.
“Pending the ongoing assessment, we are not in a position to comment further".
Lord Mandelson served as European trade commissioner from 2004 to 2008, before he was made business secretary by Gordon Brown in 2008.
The peer has been entitled to the index-linked payments from the European job since turning 65 in 2018, and while Olaf can investigate and make recommendations to the commission, they are not legally binding.
Nick Aiossa, of anti-corruption group Transparency International, said that if misconduct was found, “Mandelson must be stripped of his commissioner’s pension”.
One email published in the Epstein files appeared to show Lord Mandelson gave the late paedophile advance notice of the EU’s €500bn bailout to Greece, which was agreed by European finance ministers in the early hours of May 10 2010.
The inquiry comes after Lord Mandelson was featured in the so-called Epstein files and arrested earlier this week under suspicion of misconduct of public office.
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Lord Mandelson could lose his EU pension for tipping off Jeffrey Epstein | PALord Mandelson has not commented publicly on the police investigation, but it is understood his position is that he has not acted in any way criminally and that he was not motivated by financial gain.
Emails published as part of the Epstein files appear to show he was sharing confidential information while serving as business secretary, although it is not known whether these emails form the subject of the police investigation.
Sir Lindsay Hoyle, the Commons Speaker, had contacted officers with information that the disgraced peer was planning to flee the country, which led to Lord Mandelson being detained on Monday.
Lord Mandelson's lawyers described the claim he was planning to leave the country as "baseless" saying "there is absolutely no truth whatsoever in any such suggestion".
The arrest served as the latest in a line of blows to Sir Keir Starmer, who has been heavily criticised for appointing Lord Mandelson as US ambassador, despite knowing about his links to Epstein.
Lord Mandelson has already resigned from the Labour Party and stepped down from the House of Lords over the Epstein scandal.
However he still remains a peer and Sir Keir has pledged to bring in a law to strip him of the title.
GB News has approached the peer's lawyers for comment.