Abstract
Abstract This paper studies the interplay between governance priorities concerning urban shrinkage and the circular economy (CE) agenda in the cases of Parkstad Limburg (NL) and Satakunta (FI), aiming to assess the potential of European circular imaginaries for creating novel development pathways in shrinking cities and regions. The findings reveal that the CE agenda emerges within specific sectors due to various influences, including European institutional frameworks, national policies and local initiatives. Notably, the advocacy of commercial actors plays an instrumental role in advancing the CE concept into policy. However, both regions also demonstrate differences arising from distinct regional characteristics. Satakunta harnesses its manufacturing legacy to pursue economic and demographic growth through an industrial CE. Meanwhile, Parkstad Limburg prioritises circular construction to facilitate spatial restructuring and secure public funding. Therefore, in shrinking contexts, CE operates as a unifying agenda for existing interests, upholding prevailing political priorities rather than opening novel governance avenues.
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