The party was founded in 1990 when the Social Democratic Youth League reconstituted itself as Movement for Serbia – New Democracy. The party was renamed to just New Democracy in March 1993.[1]
In the 1993 election, when the Socialist Party of Serbia lost its majority in parliament, New Democracy, which had previously belonged to the DEPOS, supported the socialists in gaining a parliamentary majority necessary to form a government, citing Milošević's commitment to securing a peace plan for Bosnia and Herzegovina.[2] In 1998, New Democracy left the government and was replaced by the Serbian Radical Party.
In 2000, New Democracy was a part of the Democratic Opposition of Serbia (DOS) coalition, the candidate of which, Vojislav Koštunica, won the 2000 presidential elections. At the parliamentary election in the same year, the party was part of the same coalition and participated in the government which was formed by DOS. In 2003 the party was renamed Liberals of Serbia.