Only nine countries — Austria, Belgium, Czechia, Denmark, Germany, Italy, Luxembourg, the Netherlands and Slovenia — are currently on track to meet the EU's 2025 objectives: recycling or reusing 55% of municipal waste and 65% of packaging waste.
Despite half a century of EU waste legislation, auditors say progress remains uneven, enforcement weak and landfill use widespread. Household, commercial and public-sector waste still accounts for 27% of all waste generated in the bloc, with several member states heavily reliant on incineration or dumping rather than recycling.
Funding gaps and stalled projects
The ECA found repeated delays, overspending and slow implementation in EU-backed waste management projects, particularly in Greece, Poland, Portugal and Romania. Many countries struggle to finance infrastructure upgrades or introduce measures such as higher landfill taxes, deposit-return systems and waste tariffs based on volume or weight.
Auditors warned that limited public funding, administrative hurdles and fragmented systems are preventing countries from scaling up recycling capacity.
A fragile recycling market
Beyond structural shortcomings, the recycling industry itself is under pressure. The ECA highlighted a chronic lack of demand for recycled materials — especially plastics — which threatens the economic viability of recycling facilities.
Stef Blok, the ECA member leading the audit, said the EU risks missing its own targets unless it supports a stable market for secondary raw materials.
"Circularity is essential to Europe's sustainability goals, but without a functioning recycling industry and market, targets remain theoretical," Blok said.
Producers of recycled plastics have repeatedly warned of rising energy costs, cheap imports of virgin plastic and weak demand for EU-made recycled materials — all of which undermine investment.
In Romania and Poland, recycling operators reported a shortage of buyers, forcing them to transport recovered materials hundreds of kilometres away, increasing emissions and costs. One site sent glass 590km, while another shipped aluminium over 900km for processing.
Monitoring failures and delayed enforcement
The ECA also criticised the European Commission for lax oversight, noting it has not conducted a single on-site compliance visit in more than a decade. Infringement proceedings for missed 2008 targets only began in July 2024, two years after member states submitted data.
Because reporting deadlines fall 18 months after the reference year, auditors say enforcement comes too late to drive corrective action.
Future reforms — but will they be enough?
Several new EU measures aim to reverse the trend. Extended producer responsibility schemes became mandatory for packaging in 2025, and a bloc-wide deposit return scheme will take effect in 2029. The Commission is also preparing a Circular Economy Act for 2026, expected to strengthen incentives for recyclers.
But auditors warn that unless the EU addresses market weaknesses, financial barriers and sluggish implementation, circular economy ambitions will continue to stall.