The party was founded on 6 February 1994 as the legal successor of the Italian Liberal Party (PLI):[3] Alfredo Biondi, incumbent president of the PLI, was elected president and Raffaello Morelli coordinator.

The FdL failed to file lists for the subsequent European Parliament election.

In 1995 the party was joined by the Liberal Democratic Union,[6] whose leader Valerio Zanone was elected president,[7] replacing Antonio Baslini.

[8] In the 1996 general election Zanone and Morelli sided the FdL with The Olive Tree[7] and, more specifically, with Democratic Union.

In the meantime, in the 2004 European Parliament election the FdL had formed joint lists with the Federation of Liberal Democrats.