Modern European states rely on the capitalist organization of the economy. Croatia and Serbia marked their path of development from the year 1990 to 2020 by transitioning from a socialist to a capitalist economic system with periods of economic boom and economic decline. In the observed period, both countries failed to reach the level of economic growth and development achieved in the record-breaking period of the end of the Second World War to 1980. Analyzing the theoretical framework of Varieties of Capitalism, it is not possible to unambiguously classify Croatia and Serbia in the basic group of the division of coordinated or liberal economy, but it is indicative that Croatia possesses more characteristics of a liberal economy compared to Serbia. Taking into account their state configuration, political decision-making, and EU membership status, or rather their tendency towards EU membership, Serbia and Croatia are ready to accept the policies of the European Union, which in principle rely on the policies of coordinated economies. Especially with the protection of workers’ rights and improvements in industrial relations. This paper presents macroeconomic data that identifies issues that slow down development in the analyzed countries. It also establishes the existence of factors that will prevent the development of Croatia and Serbia in future favorable moments in the field of the international economy.