Assessment of European Union countries’ positions in the context of circular economy

DOI: https://doi.org/10.3846/bmee.2026.25686

Abstract

Purpose – Assess the level of the circular economy in EU countries between 2020 and 2023, ranking them according to circular economy indicators and identifying changes in their positions.

Research methodology – The study used the European Commission’s 2023 set of indicators to evaluate the performance of the circular economy across EU countries. Twenty-three indicators were selected based on data availability. Missing data were forecasted using the moving average method to ensure completeness for subsequent analysis. The CRITIC method was then applied to determine indicator weights and rank countries, followed by the TOPSIS multi-criteria decision-making approach to evaluate and compare national positions.

Findings – The results show stable circular economy levels across the EU but with clear gaps between leading and lagging countries. Germany, the Netherlands, and Italy perform strongest, while Bulgaria and Romania progress slowly due to structural constraints. Lithuania, Austria, and other mid-tier countries advance gradually, with ranking shifts revealing uneven implementation of the EU Circular Economy Action Plan. Overall, the findings compare national progress and highlight key drivers and barriers to the transition.

Research limitations – The study was constrained by incomplete and inconsistent EU statistical data, which required applying the Moving Average method to estimate missing values. In addition, the absence of a standardised composite indicator framework limited methodological comparability. Future research should prioritise improving data availability and creating unified guidelines for building composite indicators to strengthen reliability and cross-country benchmarking.

Practical implications – The results provide policymakers and industry stakeholders with a clear ranking of EU countries’ progress in implementing circular economy principles, enabling targeted improvement strategies. The proposed methodology can be used to monitor nation- al performance, allocate resources effectively, and develop standardised evaluation frame- works for sustainability initiatives. 

Originality/Value – This study integrates the CRITIC and TOPSIS methods with the latest EU indicators – a combination rarely used in circular economy analysis. It offers a comprehensive multi-criteria assessment of EU countries, unlike earlier studies based on single or fragmented indicators.

Keywords:

circular economy, sustainability, European Union, multi-criteria decision-making, CRITIC-TOPSIS

How to Cite

Karazijienė, Žaneta, & Buivydaitė, A. (2026). Assessment of European Union countries’ positions in the context of circular economy. Business, Management and Economics Engineering, 24(2), 255–275. https://doi.org/10.3846/bmee.2026.25686

Share

Published in Issue
April 30, 2026
Abstract Views
0

References

Alshemari, A., Breen, L., Quinn, G., & Sivarajah, U. (2020). Can we create a circular pharmaceutical supply chain (CPSC) to reduce medicines waste? Pharmacy, 8(4), Article 221. https://doi.org/10.3390/pharmacy8040221

Bassi, F., & Dias, J. G. (2019). The use of circular economy practices in SMEs across the EU. Resources, Conservation and Recycling, 146, 523–533. https://doi.org/10.1016/j.resconrec.2019.03.019

Bocken, N. M. P., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33(5), 308–320. https://doi.org/10.1080/21681015.2016.1172124

Boorová, B. (2020). Circular economy as a way of sustainable production and consumption. SHS Web of Conferences, 83, Article 01004. https://doi.org/10.1051/shsconf/20208301004

Camilleri, M. A. (2025). Cocreating value through open circular innovation strategies: A results‐driven work plan and future research avenues. Business Strategy and the Environment, 34(4), 4561–4580. https://doi.org/10.1002/bse.4216

Colasante, A., D’Adamo, I., Morone, P., & Rosa, P. (2022). Assessing the circularity performance in a European cross-country comparison. Environmental Impact Assessment Review, 93, Article 106730. https://doi.org/10.1016/j.eiar.2021.106730

Das, A. K., Hossain, Md. F., Khan, B. U., Rahman, Md. M., Asad, M. A. Z., & Akter, M. (2025). Circular economy: A sustainable model for waste reduction and wealth creation in the textile supply chain. SPE Polymers, 6(1), Article e10171. https://doi.org/10.1002/pls2.10171

European Academies Science Advisory Council. (2016). Indicators for a circular economy. German National Academy of Sciences Leopoldina. https://easac.eu/fileadmin/PDF_s/reports_statements/Circular_Economy/EASAC_Indicators_web_complete.pdf

European Commission. (2018). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a revised monitoring framework for the circular economy (2018, January 16, No. COM/2018/029). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2018%3A29%3AFIN

European Commission. (2023). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a revised monitoring framework for the circular economy (2023, May 15, No. COM/2023/306). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:52023DC0306.

European Union. (n.d.). Circular economy. https://eur-lex.europa.eu/EN/legal-content/glossary/circular-economy.html#:~:text=This%20means%20a%20system%20where,global%20efforts%20on%20sustainable%20development

Eurostat. (n.d.). Circular economy: Overview. https://ec.europa.eu/eurostat/web/circular-economy

Franco, S., & Giannoccaro, I. (2025). Dynamic capabilities and microfoundations to overcome barriers to circular economy implementation. Business Strategy and the Environment, 34(4), 4392–4408. https://doi.org/10.1002/bse.4171

Garcia-Bernabeu, A., Hilario-Caballero, A., Pla-Santamaria, D., & Sales-Molina, F. (2020). A process oriented MCDM approach to construct a circular economy composite index. Sustainability, 12(2), Article 618. https://doi.org/10.3390/su12020618

Gudaitė, S. (2022, April 21). Žiedinės ekonomikos principų integravimas paukštininkystės sektoriuje [Integrating the principles of the circular economy in the poultry sector]. In Proceedings of the 19th Conference of Young Scientists “Young Scientist 2022” (pp. 273–278). Kaunas, Lithuania.

Gunarti, T. S., Tujni, B., & Solikin, I. (2023). Determine the material inventory forecasting method based on the smallest error. JURTEKSI (Jurnal Teknologi Dan Sistem Informasi), 9(4), 691–698. https://doi.org/10.33330/jurteksi.v9i4.2650

Hajduk, S. (2021). Multi-criteria analysis in the decision-making approach for the linear ordering of urban transport based on TOPSIS technique. Energies, 15(1), Article 274. https://doi.org/10.3390/en15010274

Jayawardana, J., Sandanayake, M., Kulatunga, A. K., Jayasinghe, J. A. S. C., Zhang, G., & Osadith, S. A. U. (2023). Evaluating the circular economy potential of modular construction in developing economies – a life cycle assessment. Sustainability, 15(23), Article 16336. https://doi.org/10.3390/su152316336

Janik, A., & Szafraniec, M. (2019). Circular economy performance of EMAS organizations in Poland based on an analysis of environmental statements. Multidisciplinary Aspects of Production Engineering, 2(1), 536–547.

Kambanou, M. L., Hajoary, P. K., & Lindfors, A. (2025). Supporting start‐ups in the circular economy: An analysis of university‐led incubators in India. Journal of Industrial Ecology, 29(3), 997–1012. https://doi.org/10.1111/jiec.70032

Kanda, W., Klofsten, M., Bienkowska, D., Audretsch, D. B., & Geissdoerfer, M. (2025). Orchestration in mature entrepreneurial ecosystems towards a circular economy: A dynamic capabilities approach. Business Strategy and the Environment, 34(4), 4747–4765. https://doi.org/10.1002/bse.4229

Karakış, E. (2021). Machine selection for a textile company with CRITIC and MAUT methods. Avrupa Bilim Ve Teknoloji Dergisi, 27, 842–848. https://doi.org/10.31590/ejosat.994697

Kasztelan, A. (2020). How circular are the European economies? A taxonomic analysis based on the INEC (Index of national economies’ circularity). Sustainability, 12(18), Article 7613. https://doi.org/10.3390/su12187613

Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation & Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005

Kraviarová, D., Janošovský, J., & Variny, M. (2024). Multi-criteria evaluation of environmentally friendly alternative fuels. Engineering Proceedings, 64, Article 11. https://doi.org/10.3390/engproc20240640011

Lahti, T., Wincent, J., & Parida, V. (2018). A definition and theoretical review of the circular economy, value creation, and sustainable business models: Where are we now and where should research move in the future? Sustainability, 10(8), Article 2799. https://doi.org/10.3390/su10082799

Lai, Y. Y., & Lee, Y. M. (2022). Management strategy of plastic wastes in Taiwan. Sustainable Environment Research, 32, Article 11. https://doi.org/10.1186/s42834-022-00123-0

Li, A., Guo, C., Gu, J., Hu, Y., Luo, Z., & Yin, X. (2024). Promoting circular economy of the building industry by the use of straw bales: A review. Buildings, 14(5), Article 1337. https://doi.org/10.3390/buildings14051337

Lopes, J. M., Gomes, S., & Nogueira, E. (2025). Pathways to circularity: Engagement patterns of European SMEs in the circular economy. Business Strategy and the Environment, 34(3), 3848–3864. https://doi.org/10.1002/bse.4192

Madyaningarum, N., Saputra, N. B., Trinopiawan, K., Hidayat, A. E., Sari, M., Sari, Y. M., Purwanti, T., Prassanti, R., Laksmana, R. I., & Rahmadani, M. A. (2024). Chemical processing development for radioactive minerals processing facility: A circular economy model. International Journal on Advanced Science, Engineering and Information Technology, 14(3), 1049–1056. https://doi.org/10.18517/ijaseit.14.3.19633

Mashovic, A., Ignjatovic, J., & Kisin, J. (2022). Circular economy as an imperative of sustainable development in North Macedonia and Serbia. Ecologica, 29(106), 169–177. https://doi.org/10.18485/ecologica.2022.29.106.5

Moraga, G., Huysveld, S., Mathieux, F., Blengini, G. A., Alaerts, L., Van Acker, K., de Meester, S., & Dewulf, J. (2019). Circular economy indicators: What do they measure? Resources, Conservation and Recycling, 146, 452–461. https://doi.org/10.1016/j.resconrec.2019.03.045

Muchangos, L. S. d. (2022). Mapping the circular economy concept and the global south. Circular Economy and Sustainability, 2, 71–90. https://doi.org/10.1007/s43615-021-00095-0

Murti, Z., Dharmawan, Siswanto, Soedjati, D., Barkah, A., & Rahardjo, P. (2022). Review of the circular economy of plastic waste in various countries and potential applications in Indonesia. IOP Conference Series: Earth and Environmental Science, 1098, Article 012014. https://doi.org/10.1088/1755-1315/1098/1/012014

Muscillo, A., Re, S., Gambacorta, S., Ferrara, G., Tagliafierro, N., Borello, E., Rubino, A., & Facchini, A. (2021). Circular city index: An open data analysis to assess the urban circularity preparedness of cities to address the green transition – a study on the Italian municipalities. ArXiv. https://doi.org/10.48550/arXiv.2109.10832

Othman, A. (2022). Towards a circular economy in the Arab region: Development of transformation measurement index. Arab Monetary Fund. https://www.amf.org.ae/sites/default/files/publications/2022-10/Towards%20a%20Circular%20Economy%20in%20the%20Arab%20Region_final.pdf

Özçatalbaş, O. (2023). An evaluation of the transition from linear economy to circular economy. In Sustainable rural development perspective and global challenges. IntechOpen. https://doi.org/10.5772/intechopen.107980

Pangsri, P. (2015). Application of the multi criteria decision making methods for project selection. Universal Journal of Management, 3(1), 15–20. https://doi.org/10.13189/ujm.2015.030103

Pauliuk, S. (2018). Critical appraisal of the circular economy standard BS 8001: 2017 and a dashboard of quantitative system indicators for its implementation in organizations. Resources, Conservation and Recycling, 129, 81–92. https://doi.org/10.1016/j.resconrec.2017.10.019

Phan, T. T. H., Tran, H. Đ., & Pham, H. T. M. (2025). Impact of circular economy practices on financial performance of construction enterprises in Vietnam. Management Science Letters, 15(2), 55–62. https://doi.org/10.5267/j.msl.2024.5.005

Popović, A., & Radivojević, V. (2022). The circular economy: Principles, strategies and goals. Economics of Sustainable Development, 6(1), 45–56. https://doi.org/10.5937/ESD2201045P

Rimantho, D., Suyitno, B. M., Pratomo, V. A., Haryanto, G., Prasidha, I. N. T., & Puspita, N. (2023). Circular economy: Barriers and strategy to reduce and manage solid waste in the rural area at Jepara District, Indonesia. International Journal of Sustainable Development and Planning, 18(4), 1045–1055. https://doi.org/10.18280/ijsdp.180407

Sakdiyah, S. H., Eltivia, N., Riwajanti, N. I., & Ekasari, K. (2021). Forecasting analysis on the impact of pandemic towards cigarette sales. In Proceedings of the 2nd Annual Management, Business and Economic Conference (AMBEC 2020), (Vol. 183, pp. 263–268). Atlantis Press. https://doi.org/10.2991/aebmr.k.210717.053

Saraswati, R., Kusumowidagdo, A., Susilowati, Sukirmiyadi, Karaman, N., Ali, M., Zafriana, L., & Teowarang, J. (2025). Mapping the efficiency of Surabaya’s creative industries with data envelopment analysis – a push towards a circular economy. IOP Conference Series: Earth and Environmental Science, 1454, Article 012069. https://doi.org/10.1088/1755-1315/1454/1/012069

Saravanan, K., & Chandrasekar, T. (2025). Assessing the role of circular economy knowledge, attitudes, and practices in driving sustainable development: A survey of textile industries in Tamil Nadu. Business Strategy & Development, 8(1), Article e70074. https://doi.org/10.1002/bsd2.70074

Skvarciany, V., Gudelytė-Žilinskienė, L., Činčikaitė, R., & Seržantė, M. (2025). Kiekybiniai ir ekspertiniai sprendimų metodai socialiniuose moksluose. Vilniaus Gedimino technikos universitetas. https://doi.org/10.20334/2025-030-S

Szalmáné Csete, M., & Esses, D. (2022). Usage of production function in linear economy. Periodica Polytechnica Transportation Engineering, 50(2), 223–226. https://doi.org/10.3311/PPtr.16616

Taherdoost, H., & Madanchian, M. (2023). Multi-criteria decision making (MCDM) methods and concepts. Encyclopedia, 3(1), 77–87. https://doi.org/10.3390/encyclopedia3010006

United Nations Environment Programme. (2021). Food Waste Index Report 2021. https://wedocs.unep.org/bitstream/handle/20.500.11822/35280/FoodWaste.pdf

Vishwakarma, A., Dangayach, G. S., Meena, M. L., Gupta, S., Joshi, D., & Jagtap, S. (2024). Can circular healthcare economy be achieved through implementation of sustainable healthcare supply chain practices? Empirical evidence from Indian healthcare sector. Journal of Global Operations and Strategic Sourcing, 17(2), 230–246. https://doi.org/10.1108/JGOSS-07-2022-0084

Vranjanac, Ž., Velimirović, L., & Stanković, M. (2022). Guideline for constructing composite indicators that measure circular economy performance. Facta Universitatis, Series: Working and Living Environmental Protection. https://doi.org/10.22190/FUWLEP2201001V

Zilia, F., Andreottola, F. G., Orsi, L., Parolini, M., & Bacenetti, J. (2024). Trash or treasure? A circular business model of recycling plasmix. Circular Economy, 3(2), Article 100089. https://doi.org/10.1016/j.cec.2024.100089

Žilinskienė, L., & Žilinskas, T. (2020). Žiedinės ekonomikos ir atliekų teisinio reguliavimo koreliacijos probleminiai aspektai [Problematic aspects of the correlation between the circular economy and waste regulation]. Jurisprudence, 27(1), 95–112. https://doi.org/10.13165/JUR-20-27-1-05

View article in other formats

CrossMark check

CrossMark logo

Published

2026-04-30

Issue

Section

Articles

How to Cite

Karazijienė, Žaneta, & Buivydaitė, A. (2026). Assessment of European Union countries’ positions in the context of circular economy. Business, Management and Economics Engineering, 24(2), 255–275. https://doi.org/10.3846/bmee.2026.25686

Share