Circular economy: advancement of European Union countries

Background Circular economy (CE) is a development priority of the European Union and it is part of the EU industrial strategy. The transition to a more circular economy is an essential contribution to the EU's efforts to develop a sustainable, low carbon, resource-efficient and competitive economy. The author focuses her CE-related reflections and research in this paper on the macro-level (research subjects: 28 EU countries), the level which is least represented in scholarly publications addressing CE (as follows from the analysis of literature in the Scopus database). This study aims to fill this gap partially. The aim of this paper is to identify and group the EU-28 countries according to their advancement towards circular economy. CE indicators proposed by the European Commission were used for the analysis. Given the research subjects and after an analysis of the literature they were concluded to be the most adequate. The theoretical part was based on an analysis of the literature, whereas the empirical work used the principal components analysis, hierarchical and k-means clustering and a grade correspondence-cluster analysis. Results On the basis of the research, the existence of a "two-speed Europe" was identified in terms of EU countries' advancement towards CE. Leading countries, those most advanced in pursuing operation according to CE principles, include Germany, Belgium, Spain, France, Italy, the Netherlands and the United Kingdom. The second pole accommodates EU countries in which transformation towards CE is happening at the slowest pace. This group includes mainly countries of the Central and Eastern Europe and the countries of the south of Europe. Conclusions Differentiated levels of advancement of individual countries towards CE result inter alia from the adoption by some of the latter of different development strategies for their economies' transitioning to circular economy (according to recommendations of EU ministers at the Environment Council in June 2016) and also from the differences occurring in social and economic development (it is mostly noticeable between the EU-15 and the EU-13 countries). Unfortunately, as can be concluded from the effects obtained so far, only a few of the adopted development strategies may be considered effective in meeting the challenges of circular economy according to the European Union's standards.