As Bulgaria prepares to adopt the euro on January 1, its government and business sector are watching Croatia closely. 

Nearly three years after becoming the eurozone's newest member, leaving behind the kuna to join the bloc's currency, Croatia continues to adjust to the economic shifts brought by the transition. 

From small manufacturers to large businesses, the experience offers insight into both the challenges and long-term advantages Bulgaria may soon encounter.

On the outskirts of Zagreb, boutique spirits producer Duh u Boci is busy preparing its latest holiday release. Bottles of high-end liquor are hand-labeled while a film crew captures promotional footage — part of the company's response to rising production costs. 

In the cellar, rows of wooden barrels hold maturing spirits, a symbol of craftsmanship now tested by higher expenses and shifting consumer behavior. 

"When we speak about transfer of the money from kuna to euro, we haven't experienced much except huge inflation," says Duh u Boci founder Tomislav Anadolac. "We somehow in our minds exchange one kuna to one euro, and that's a huge difference in the value of money."

Croatia's inflation rate surged after the currency change, outpacing most eurozone economies. 

The country recorded inflation between 7 and 8 percent last year — notably higher than the eurozone average of around 5 percent. Prices for food, hospitality and household services rose sharply, straining consumers and small businesses alike.

Still, economists argue that the broader economic benefits of euro adoption are substantial and will likely extend to Bulgaria after January 1.

"The fall of the insurance premium of risk, the reduction of the cost of living, Croatia has become financially more stable," said Ivan Odrčić, Advisor to the Chief Economist at the Croatian Employers' Association. "Companies achieved annual savings of approximately 160 million euros."

At Zagreb's Interliber Book Fair — one of the region's largest publishing events — the euro has also created new commercial opportunities. Smaller publishers say that cross-border customers find it easier to purchase books directly. 

"Before that they had to buy the books from some wholesalers, retailers from their countries," said Nikica Micevski, Head of Sales at Fokus Publishing House. "But now with only a few clicks, they can go to our webpage, paying their account currency, like euro, and they can get the book in a few days."

While inflation remains a persistent concern, economists agree Croatia is now more financially resilient. And many believe Bulgaria, too, may see stability gains once it adopts the euro in January.