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The term stems from social democracy of the SPD and the liberalism of the FDP. Because of the colours traditionally used to symbolise the two parties (red for SPD and yellow for FDP), such a coalition is also referred to as a "red–yellow" coalition (rot–gelbe Koalition). The FDP is basically an economic/classical liberal party, but under the coalition, the FDP and the SPD are close to left-liberalism (Linksliberalismus).
Social–liberal coalitions are currently rare, as the SPD usually governs with the Alliance '90/The Greens and the FDP orients itself towards long-term co-operation with the Christian Democratic Union and Bavarian Christian Social Union. However, a social–liberal coalition ruled from 1991 to 2006 in the German State of Rhineland-Palatinate and would have continued to do so, had the SPD not won an absolute majority. Social–liberal coalitions have previously been in power in many other federal states of Germany as well.