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The paper discusses current issues of economic policy in the context of the initial conditions of sustainable development. The aim of the article is to map the view of sustainable development, to evaluate its selected areas in the economic and environmental dimension and their impact on economic development in EU countries. Using a panel data analysis in the years 2010-2022, the influence of selected areas (indicators) of sustainable development in the context of economic development is examined in EU countries. The results showed the greatest positive impact of economic sustainability indicators in the field of circular economy - Resource productivity and Material footprint in the context of economic development. On the other hand, the greatest negative impact on the economic development of EU countries is associated with share of environmental taxes in total tax revenues and circular material use rate. At the same time, the results confirmed certain differences in the impact of the examined areas of economic and environmental sustainability between EU countries with a higher and lower economic level than the EU average. The findings this research demonstrate the importance of specific areas of economic and environmental sustainability in the examined groups of EU countries.