“ taking back control of globalisation : sovereignty through european integration ”, in : the schuman report on europe, the state of the union 2018, robert schuman foundation, march. 6 see cœure, b. ( 2018 ), “ the consequences of protectionism ”, panel contribution at the 29th edition of the workshop “ the outlook for the economy and finance ”, villa d ’ este, cernobbio, 6 april. 7 see cœure, b. ( 2018 ), “ taking back control of globalisation : sovereignty through european integration ”, op. cit. 8 see maas, h. ( 2018 ), “ courage to stand up for europe – # europeunited ”, speech at pulse of europe and the schwarzkopf foundation young europe, 13 june. 3 / 3 bis central bankers'speeches

benoit cœure : asserting europe's leadership panel remarks by mr benoit cœure, member of the executive board of the european central bank, at rencontres economiques d ’ aix - en - provence, aix - en - provence, 8 july 2018. * * * global governance since world war ii has been characterised by american leadership. according to the famous distinction introduced by thucydides in his history of the peloponnesian war1, leadership can be exercised in two very distinct ways. “ legitimate ” leadership builds on trust and common identities. this is what the ancient greeks called hegemonia. but leadership can also be based on arkhe, which can be understood as exercising powers through command and control. interpretations suggest that the move from hegemonia to arkhe is what thucydides saw as the root cause of athens ’ defeat by sparta. i would argue that american leadership over the past seven decades was of the first, legitimate type. 2 in other words, it went largely unchallenged because it was built on shared fundamental values that brought nations around the globe together – the values of human rights, freedom, democracy, equality and the rule of law. these are also the values for which we europeans stand. globalisation and free markets were a natural consequence of american hegemony. both rested on the ideological victory of the capitalist system on which the us economy is built. free and open markets were seen as a vehicle to sustain and expand this economic model. ironically, this system is now being challenged by its most ardent champion. putting one ’ s country first marks a departure from the sort of prudent and vigilant policy that leadership by a legitimate hegemon would entail. the transactional nature of such an approach arguably belongs much more to arkhe – hard power – where policies and doctrines are imposed on others, without their consent and regardless of the consequences. international agreements are repealed, the international rule of law is questioned and other nations are challenged. how europe reacts to this dismantling of the current international order will have a profound impact on the world. dismissing the current tensions as an accident would be a mistake in my view, not least because they are deep - rooted and predate recent political events. in particular, the acceleration of globalisation and technological progress in the past 30 or so years has radically changed the world we live in. while millions of people have been lifted out of extreme poverty, wealth