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Under PR multi-party governments can be formed either through coalitions, which requires power sharing, or other arrangements, such as individual agreements for supply and confidence. The General elections of New Zealand in 2005 under AMS (called Mixed Member Proportional) provides an interesting example. The New Zealand Labour party only obtained two more seats than the second largest party, the National party. Labour formed a minority government in coalition with its historical ally the Progressive Party (with one member), and with a confidence-and-supply agreement with the New Zealand First party (that had seven seats) and the United Future party (three seats). This arrangement including awarding both these party leaders' ministerial positions outside of the Cabinet, including the post of Minister for Foreign Affairs. Labour did not give the Green Party any Cabinet positions despite the Green's support of Labour prior to the elections, although several concessions on energy and transport policies were made. While historically relationships between these parties existed, this outcome was innovative and unexpected, particularly by Green voters as the Green Party was considered the natural coalition partner for Labour. Despite being complex and sometimes unpredictable, this has not resulted in any instability to date.

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