What effect does a coalition agreement have in the context of a minority government?

A coalition agreement in the context of a minority government allows smaller parties to exert more influence. This is significant because, in a minority government situation, no single party has an outright majority in the legislature. To effectively govern and pass legislation, the minority government must negotiate with other parties, often including smaller ones. As a result, these smaller parties can secure concessions or influence key policy decisions. Their support becomes essential for the minority government to maintain stability and functionality, thus enhancing their political leverage compared to a situation where one party holds a majority.

In contrast, other choices do not accurately describe the effects of a coalition agreement within a minority government framework. A coalition does not undermine parliamentary power but seeks to strengthen governance through collaboration. It does not ensure a clear representation of voters' choices since coalitions often represent compromises that may not directly reflect the preferences of the electorate. Moreover, a coalition agreement typically aims to foster governance without the need for immediate elections, which might occur if a minority government cannot secure sufficient support to function effectively.