What Is Circular Is Not All Round: A Critical Analysis of the New European Packaging Regulation and Its Industrial Policy Implications

The present article develops a critical discussion of the approach adopted by the European Union to promote the «circular economy», with reference to the so-called «waste hierarchy » and the measures proposed for waste prevention. The proposed new Regulation on of packaging and packaging waste is analyzed in detail to show the inconsistency of the benefits invoked in the face of the very high environmental and social costs. This analysis is part of the broader ongoing debate about industrial policy strategies that can promote the ecological transition, from a green growth perspective. If industrial policy must necessarily recover a more interventionist and discretionary model for this purpose, particular attention must be paid to the way in which the intermediate and final objectives of the transition are identified, in order to maximize the effectiveness of the policy and keep its costs to a minimum. The choice of appropriate indicators is therefore fundamental to measure the effectiveness of the policy and guide its evolution.