Comparative Evaluation of EU Circular Economy Sector Performances: Cluster-Driven Analysis and MCDM Methods

The main purpose of the research is to rank EU member states by the intensity of their efforts to implement the CE model. Understanding EU member states’ differences is crucial to formulating effective policy measures that foster sustainable development and enhance economic resilience across the EU. The degree of CE development was examined through three sub-indicators: (i) private investment related to CE sectors; (ii) persons employed in CE sectors; and (iii) gross value added as a percentage of GDP. Data from the Eurostat database for the last five available years were used. Hierarchical agglomerative cluster analysis is used to identify groups of structurally similar countries. Countries are ranked using the PROMETHEE II multi-criteria decision-making method with objectively derived CRITIC weights, complemented by GAIA visualisation. The analysis identifies five distinct clusters with a highly heterogeneous CE landscape across the EU. The PROMETHEE-GAIA research results reveal two different paths on which European countries are moving towards CE. The first, characterized by high structural maturity but limited dynamic flexibility, is evident in Sweden and Belgium. And the second path, illustrated by Estonia and Croatia, is distinguished by a rapid pace of transformation and lower historical structural capacities.