Editorial: The prospects of the circular economy in Europe

In the last decade, the circular economy (Lewandowski, 2016) has emerged as an alternative model to the linear economy (Su et al., 2013; Ghisellini et al., 2016; Lieder and Rashid, 2016; Bocken et al., 2016; Murray et al., 2017; Kirchherr et al., 2017; Geissdoerfer et al., 2017) aimed at reducing environmental impact and maximizing resource efficiency. The circular economy promotes reuse, recycling and waste reduction, aiming to decouple economic growth from the intensive use of natural resources (Sariatli, 2017). The European Union has adopted several policies to facilitate this transition, but the process is still in its early stages and presents numerous challenges (Korhonen et al., 2018). The paper, in the section relating to the current state of the transition towards the CE in Europe, from paragraph 2 to paragraph 2.5, the policies necessary for the transition are developed. The section dedicated to the regulatory actions of European regulation is developed in paragraph 3 and 3.1. The section dedicated to the future prospects of the circular economy in Europe, from paragraph 4 to paragraph 4.4 highlights the main trajectories of future development of the transition, underlining the current limits and the difficulties of completing the transition from the linear to the circular model. Finally, the conclusions report the main implications of the work carried out.

Circular economy (Corvellec et al., 2022; Grafström and Aasma, 2021;) in the 27 EU countries it is characterized by a hybrid approach combining top-down policies with bottom-up initiatives (Hartley et al., 2020; Winans et al., 2017; McDowall et al., 2017). In some countries, the circular economy is promoted through strict regulations and economic incentives, while in others it relies on private initiative and collaboration between businesses and local communities. Below is a breakdown of the types of interventions in relation to the Member States (Domenech and Bahn-Walkowiak, 2019; García‐Quevedo et al., 2020).

The hybrid approach indicates a combination of regulatory and voluntary strategies, in which governments and institutions implement regulations and incentives (top-down), while businesses, citizens and local communities develop independent initiatives (bottom-up) (Zaccone et al., 2022: Govindan et al., 2020). This combination allows for greater adaptability to the different economic and cultural realities of the 27 EU countries, ensuring a more effective and inclusive transition (Hysa et al., 2020).

Top-down policies are measures taken by national governments or European institutions to incentivize the EC through laws, regulations and financial incentives (European Commission, 2025). These policies include the EU Circular Economy Action Plan (2025) and the European Green Deal. Some countries, such as Germany and France, have adopted stringent regulations, imposing binding recycling and waste reduction targets, while others, such as Poland and Bulgaria, are still developing a clear regulatory framework (Marino and Pariso, 2020; Mazur-Wierzbicka, 2021; Mhatre et al., 2021).

Bottom-up initiatives emerge from businesses, NGOs and local communities, often without direct government intervention. These include collaborative economy networks, corporate eco-design programmes and sharing economy platforms. In countries such as The Netherlands and Denmark, businesses have developed business models based on reuse and regeneration of resources, while in Italy and Spain local cooperatives promote material recovery and waste reduction Lanau and Liu, 2020; Magazzino et al., 2021; Campbell‐Johnston et al., 2021; Calisto Friant et al., 2021.

Some European nations have introduced stringent regulations to promote the circular economy: Germany (Horbach and Rammer, 2020) imposes high recycling standards. France (Leipold et al., 2021) prohibits the destruction of unsold products and promotes reuse. Others, The Netherlands, Sweden (Heshmati and Rashidghalam, 2021) and Italy (Carmana et al., 2021), regulations that highlight the need to support the transition with tax incentives for consumers, tax credits for companies.

In many EU countries, businesses and local communities are adopting innovative solutions to support the circular transition. Denmark, The Netherlands, Italy, Spain (Rincón-Moreno et al., 2021; Aranda-Usón et al., 2020; Aznar-Sánchez et al., 2020; Díaz-López et al., 2021) are implementing solutions in the digital sector. These implementation producing modular and repairable electronic devices, the recovery of materials and products to reduce the environmental impact in the construction sector, urban regeneration programs that involve businesses and local communities in the sustainable management of resources.

The EU has introduced several strategies to support the transition to the CE, including the Circular Economy Action Plan, which sets key targets for recycling, waste reduction and innovation in production processes. However, there are still significant differences in policy implementation across Member States. The heterogeneity among EU countries in the transition to the circular economy is due to several factors, including the level of economic development, national policy priorities and the availability of adequate infrastructure. For example, countries such as Germany, The Netherlands and Sweden have adopted advanced regulations and tax incentives to promote circularity. Eastern European countries such as Bulgaria and Romania (Iavanova, 2021; Dimova et al., 2022; Akbar et al., 2023; Vermeșan et al., 2020; Lakatos et al., 2018; Modoi and Mihai, 2022) are facing challenges related to poor recycling infrastructure and lower public awareness. In addition, some Member States have implemented restrictive measures to reduce the use of single-use plastics and incentivize reuse, while others are still in the process of planning their waste management strategies. For example, France has introduced a ban on single-use plastic tableware, while Italy has banned the production and sale of non-biodegradable plastic products. Germany has implemented a tax on plastic packaging and incentives for the use of recyclable materials, while Spain has passed legislation to phase out single-use plastic products by 2030. The Netherlands and Sweden have also adopted similar policies to limit the circulation of single-use plastics and promote sustainable alternatives. This discrepancy creates a gap in the ability to effectively implement the circular economy at the European level, requiring greater coordination between EU institutions and national governments.

Currently, the main focus of the circular economy in Europe is on recycling materials, while more advanced strategies such as reuse and waste reduction are still underdeveloped. This limitation highlights the need for a paradigm shift that favours more environmentally and economically efficient solutions.

The future prospects of the circular economy in the 27 EU countries are based on several key factors, including, in the following paragraphs, in detail, technological innovation, changes in business models, consumer participation and supporting policies (De Pascale et al. 2023; Bressanelli et al., 2022).

Adopting new technologies will be essential to accelerate the transition to CE (Larsson and Lindfred, 2020). Technologies such as artificial intelligence, the Internet of Things and blockchain can optimise material management (Chauhan et al., 2022), improve resource traceability and reduce waste. Furthermore, improving advanced recycling technologies will enable the recovery of critical materials more efficiently (Ţurcan et al., 2023).

The implementation of CE requires an evolution of business models (Försterling et al., 2023). The shift from an economy based on the ownership of goods to one based on services (e.g. the product-as-a-service model) can help reduce waste and extend the life cycle of products. The sharing economy and remanufacturing also represent promising solutions for a more sustainable use of resources (Rizos et al., 2016; Ranta et al., 2018).

The success of the circular economy also depends on the adoption of sustainable behaviours by consumers. Environmental education, economic incentives and tools such as eco-labelling can stimulate greater demand for circular and sustainable products. Furthermore, the role of consumers in separating and correctly disposing of waste will be crucial to improve the effectiveness of recycling strategies (Camacho-Otero et al., 2018; Siminelli, 2017; Maitre-Ekern and Dalhammar, 2019).

To ensure an effective transition, the EU will need to adopt an integrated approach that combines regulations, tax incentives and investments in research and development. It will be essential to harmonize policies between different member countries and provide specific support to SMEs, which often face greater difficulties in implementing circular strategies (Domenech et al., 2019; Hartley et al., 2020; Milios, 2018).

Despite the positive outlook, the transition to the CE presents many challenges: the lack of standardization for example, the absence of uniform criteria for measuring circular performance makes it difficult to monitor progress. Resistance to change, many companies hesitate to adopt circular models due to the high initial costs and uncertainty about economic returns. The technological gap between Member States, some EU countries have advanced infrastructures for circular resource management, while others are still behind. Regulatory and bureaucratic barriers, the fragmentation of environmental and trade regulations can hinder the circularity of resources at a cross-border level (Friant et al., 2021; García-Quevedo et al., 2020; Polyakov et al., 2021; Mazur-Wierzbicka 2921; Grafström and Aasma, 2021).

The circular economy represents a crucial opportunity for Europe’s future, offering environmental, economic and social benefits. However, the success of the transition will depend on the ability of the EU and its Member States to implement effective policies, promote technological innovations and incentivise new sustainable business models. Addressing current challenges and ensuring active involvement of businesses and consumers will be essential to build a more resilient and sustainable economy in the long term.