This thesis critically examines the conceptualization and implementation of the Circular Economy (CE) within the European Union (EU) by exploring its theoretical foundations and policy implications. It addresses the question of whether the EU's CE model achieves its claimed transformative potential as a sustainable economic model. Through an analysis of the historical development of CE in Europe, and a critical assessment of the 2015 EU Circular Economy Action Plan, this research identifies significant conceptual and implementation shortcomings. It argues that the EU's approach prioritizes economic outcomes over ecological sustainability, revealing inherent contradictions in the CE framework. The thesis combines qualitative and quantitative analysis, including material flow assessment, to highlight the limited problematization of EU CE policy on ecological resource limits. The findings suggest that the current EU model of CE falls short of its transformative potential, necessitating a re-evaluation of its underlying assumptions and strategies.