A coalition government may consist of any number of parties. In Germany, the coalitions rarely consist of more than two parties (where CDU and CSU, two non-competing parties which always form a single caucus, are in this regard considered a single party), while in Belgium, where there are separate Dutch and French parties for each political grouping, coalition cabinets of up to six parties are quite common.
India's present governing coalition, the United Progressive Alliance, consists of 14 separate parties. In Finland, no party has had an absolute majority in the parliament since independence, and multi-party coalitions have been the norm. Finland experienced its most stable government (Lipponen I and II) since independence with a five-party governing coalition, so called "rainbow government". The Lipponen cabinets set the stability record, and were unusual in the respect that both moderate (SDP) and extreme left wing (Left Alliance) sat in the government with the major right-wing party (National Coalition). The current government (Vanhanen II) is a four-party coalition. Japan is experiencing coalition governments since 1990s, which came into existence in 1993 after the defeat of Liberal Democratic Party, and it is present till today. Israel's governing coalitions meanwhile can include up to nine parties and are notoriously unstable as a result.
In Australia, the conservative Liberal and National parties are united in an effectively permanent coalition. This coalition has become so stable, at least at the federal level, that Australia, in effect, has become a two-party system.
In the United Kingdom, coalition governments (known as National Governments) have since 1915 only been appointed in times of national crisis. The most prominent was the National Government of 1931-1940. There was also an all party coalition during World War II. In other circumstances, when no party has found themselves in possession of a majority, minority governments have been the rule.
Arguments for and against coalition government
Advocates of proportional representation suggest that a coalition government leads to more consensus-based politics, in that a government comprising differing parties (often based on different ideologies) would need to concur in regard to governmental policy. Another stated advantage is that a coalition government better reflects the popular opinion of the electorate within a country.
Those who disapprove of coalition governments believe that such governments have a tendency to be fractious and prone to disharmony. This is because coalitions would necessarily include different parties with differing beliefs and who, therefore, may not always agree on the correct path for governmental policy. Sometimes the results of an election are such that the coalitions which are mathematically most probable are ideologically infeasible, such as in Flanders or Northern Ireland. A second difficulty might be the ability of minor parties to play "kingmaker" and, particularly in close elections, gain far more for their support than their vote would otherwise indicate.
Coalition governments have also been criticized of sustaining a consensus on issues when disagreement and the consequent discussion would be more fruitful. To forge a consensus, the leaders of ruling coalition parties can agree to silence their disagreements on an issue to unify the coalition against the opposition. The coalition partners, if they control the parliamentary majority, can collude to make the parliamentary discussion on the issue irrelevant by consistently disregarding the arguments of the opposition and voting against the opposition's proposals — even if there is disagreement within the ruling parties about the issue.
Powerful parties can also act in an oligocratic way to form an unholy alliance to stifle the growth of emerging parties. Of course, such an event is rare in coalition governments when compared to two-party systems, which typically exists because of stifling the growth of emerging parties, often through discriminatory ballot access regulations and plurality voting systems, etc.
A single, more powerful party can shape the policies of the coalition disproportionately. Smaller or less powerful parties can be intimidated to not openly disagree. In order to maintain the coalition, they will have to vote against the party's platform in the parliament. If they do not, the party has to leave the government and loses executive power.