In October 1999, the Ethiopian Democratic Party (EDP) was registered following "40 weeks of political discussion".

Former Chairman Hailu Araya had backed the leadership of Berhanu Nega, but was defeated in the Party Congress in August.

[8] Correspondingly, it takes strong exception to the "ethnic federalist" and "democratic developmentalist" ideology of the ruling EPRDF.

[10] However, it is supportive of peaceful opposition and opposes armed struggle against the present government, condemning the endorsement of Berhanu Nega for the establishment of an armed resistance (later actualised as the "Ginbot 7 Popular Force") against the EPRDF government.

[11] It was this refusal to support armed struggle that was behind much of the allegations that the EDP was insufficiently opposed to or in collaboration with the EPRDF in the run-up to the 2010 elections.

It is opposed to the price controls imposed to counter the high rate of inflation, saying that expansionary fiscal policies were to blame, and that punishing lending requirements on the private sector- private banks are required to set aside 27% of their lending for treasury bonds to fund large infrastructure projects- were hampering the economy, a position supported by the IMF, World Bank, and pro-business Ethiopian organisations like the Chamber of commerce and Capital Ethiopia.