PROMOTING THE CIRCULAR ECONOMY FOR SUSTAINABLE DEVELOPMENT AND SOCIAL COHESION IN THE EUROPEAN UNION

This paper investigates the relationship between the circular economy, sustainable development and social cohesion in the European Union by analysing the impact of circularity and social inclusion indicators on employment rates in the 27 Member States over the period 2013-2023. Building on the recognition of the circular economy as a key strategy in the European Ecological Pact and the Circular Economy Action Plan, the research proposes an integrated approach that combines the environmental and social dimensions of sustainable development. The novelty of the study lies in the application of a multiple linear regression model including variables relevant to both the circular economy (recycling rate, circular use of materials, resource productivity, waste generation) and social cohesion (NEET rate, Gini coefficient), with employment rate as the dependent variable. The results obtained indicate a significant relationship between the indicators analysed and employment, confirming that a more circular economy is associated with a higher employment rate, while social exclusion, especially among young people, has a significant negative impact. The findings support the need for the formulation of integrated European public policies that harness the potential of the circular economy not only in an ecological sense, but also as a tool for social inclusion and regional equity. The research contributes to expanding the literature by highlighting a systemic perspective on circularity and provides a relevant empirical basis for supporting the transition towards a sustainable and inclusive economy in the European Union.