It was the second government headed by Prime Minister Guy Verhofstadt (VLD).
Because it comprised liberals and socialists, it was also known as a "purple" coalition.
It was a continuation of the Verhofstadt I Government but without the Green parties.
The 2004 Regional elections saw a fundamental reshuffle to the federal government as various federal ministers joined regional governments after these elections.
The federal government after this date is often called Verhofstadt IIbis.