The fall of the Berlin Wall was an event that introduced the demolition of the Iron Curtain between the socialist East and the capitalist West. This act marks the beginning of the political unification of Germany as a central and dominant force in Europe. Economic unification began immediately after the political unification process, but this was a much more complex undertaking of the German people. Even today there are differences between East and West Germany. Croatia has also undergone a change in the same period. Croatia began the transition by the war. The process of transition did not go well, and the aftermath can be felt even today. The road from independence was difficult for Croatia and it was marked by turbulent political and economic period. Despite everything Croatia has entered the Euro-Atlantic integration and the European Union. Today, Croatia is facing structural macroeconomic challenges that are an obstacle in the path to a stable and sustainable development. East Germany and Croatia have many similarities. Both countries were under a socialist system, has gone through a transition in the last decade of the 20th century to become a democratic capitalist country. Although East Germany had a unification process and Croatia had process of becoming independent, this processes had the same goals; to create democratically regulated countries with market competitive economies. The project development of the economy in eastern Germany proved to be more expensive and more difficult than they thought, so there has been a delay of convergence to the overall economy. Social and demographic systems in Germany and Croatia have many similarities but also some structural differences. Aging population and the challenges of financing the social system are a problem for both countries, but similar problems are faced by many other European countries. The future of both countries is the development of long-term social policy that will be based on sustainable economic development and a reasonable political leadership.