Measuring circular economy performance in the EU: evidence from an FAHP-weighted composite index

Assessing circular economy (CE) performance across EU countries remains challenging due to the scarcity of country-level composite measures and uncertainty surrounding indicator importance. This study develops a circular economy index aligned with the EU Circular Economy Monitoring Framework. Expert judgments (n = 7) were collected through pairwise comparisons and translated into pillar and indicator weights using the Fuzzy Analytic Hierarchy Process (FAHP). These weights were subsequently combined with Eurostat data and aggregated through TOPSIS to derive national circular economy scores and rankings. The results identify Competitiveness and Innovation as the most important pillar, followed by Global Sustainability and Resilience, Secondary Raw Materials, Waste Management, and Production and Consumption. The highest-weighted indicators include employment in circular economy sectors, material import dependency, and gross value added. Based on the constructed index, Estonia, Latvia, Czechia, and Finland rank highest, whereas Germany, Belgium, and the Netherlands rank lowest within the sample. The proposed index provides a transparent tool for benchmarking circular economy progress and supporting policy prioritization.