[8] It has not regained seats in parliament or a place as a major political force since, only retaining minor relevance at a local level in some municipalities.

Following the defeat of 2004, the party suffered a succession of severe internal crises and a steady exodus of prominent members.

Two years later, a group led by Matej Lahovnik and the former Secretary General of the party Gregor Golobič left the LDS and founded a new social liberal political party called Zares, while several other prominent members left for the Social Democrats, including the former Prime Minister Anton Rop.

Following Kresal's election as president, several other prominent members, including former Health Minister Dušan Keber, decided to leave the party as well.

In 2008, the party won 5,3% of the votes and five seats, entering the centre-left coalition of Social Democrat Borut Pahor, with two ministers in the government.