The objective of this paper is to analyze the extent to which the system of indicators that is used in the Monitoring Framework for the transition to the circular economy (CE) is efficient and relevant in their contribution to the sustainable development of European communities. The fundaments of the transition framework and the main characteristics of the circularity indicators are presented. A critical review was performed in order to fulfill the objective of analyzing the current indicators. It is concluded that the indicators in the current framework are (as a selection from a very broad range of indicators theoretically proposed and with estimated practical applicability) limited from the perspective of circularity only to waste generation and recycling processes containing recyclable materials, without including important circularity indicators related to the prolonging and extending the life cycle of products and materials. This paper proposes and defines such an indicator, based on the consideration of the fundamental scalars describing economy, mass, energy, time, and value, respectively. The indicator is described and its applicability in all the phases of the economy is estimated.