The public sector represents a broad domain encompassing many key aspects of every state and society. This paper explores the development and characteristics of the public sector, with a particular focus on the European model, and provides a comparison between various national models of the public sector in Europe, as well as between European and American approaches to the public sector. In the introductory section, the paper defines the fundamental terms and concepts related to the public sector, alongside a historical overview of its development. Furthermore, it describes the core characteristics of the European public sector model, analysing the differences between the public and private sectors, as well as the advantages and disadvantages of the public sector. The next part of the paper addresses different national models of the public sector in Europe, including the Scandinavian, Anglo-Saxon, Continental, and Mediterranean models. The paper then proceeds to analyse the concepts of the European and American public sectors, highlighting the specificities and differences between these two approaches. Special attention is given to the impact of European integration on the public sector, focusing on structural funds, cohesion policy, regulation and standardisation, and the exchange of best practices among EU member states. The paper also considers current challenges and future perspectives for the public sector, including demographic changes, digitalisation, environmental sustainability, and economic crises and financial sustainability. In the final section, the paper compares the Croatian and Danish public sectors, examining specific measures of new public management in the Danish example and analysing what Croatia can learn from Denmark in the context of improving its own public sector.