Progress towards a circular economy at the EU level and its impact on economic development

Methods. The research is devoted to the study of the circular economy and the establishment of its impact on socio-economic development. To obtain the results, methods of scientific abstraction, analysis and synthesis were used, which allowed us to consider the essence of the circular economy and establish its advantages for ensuring the sustainable development of the countries of the European Union. Factor analysis was used to identify factors that influence the functioning of the circular economy. Methods of mathematical statistics allowed us to establish the dependence of economic growth on resource productivity. The analysis is based on three statistical hypotheses tested through a panel data model using the EViews 14.0 statistical software. Results. Based on the results of economic studies on the consequences of industrialization in emerging economies, the paper identifies the economic drivers underlying the development of the European Union's circular economy. It discusses the European Commission's Circular Economy Monitoring Framework (CEMF), which focuses on the European circular economy.. The study was conducted on a sample of 27 European Union countries for the period 2012– 2023, during which the positive effects of the implementation of circular economy models were identified, namely: an increase in the level of employed labor, an increase in municipal revenues and profits of enterprises providing environmental infrastructure. The article emphasizes that the circular economy model is determined by resource productivity, labor involved in environmental protection, the level of household waste recycling and the use of renewable energy Novelty. The results of the study confirm the statistical hypothesis, which is mainly related to the strong and significant effect of resource productivity on economic growth, which confirms the European point of view that a 30% increase in resource productivity by 2030 could lead to an increase in GDP of almost 1%. Practical value: A linear regression model is presented that can be effectively used in the development and implementation of circular economy models.