Although the Progressive Democrats never again win more than 10 seats in the Dáil, they form coalition governments with Fianna Fáil during the 26th Dáil (1989–92), the 28th Dáil (1997–2002), the 29th Dáil (2002–07) and the 30th Dáil (2007–09). These successive years as the government’s junior coalition partner gives the party an influence on Irish politics and economics disproportionate to its small size. In particular, the party has been credited with shaping the low-tax, pro-business environment that contributes to Ireland’s Celtic Tiger economic boom during the 1990s and 2000s, as well as blame for contributing to the subsequent Irish financial and economic crisis.
On November 8, 2008 the party begins the process of disbanding and is formally dissolved on November 20, 2009. The two Progressive Democrat politicians elected to the 30th Dáil, Mary Harney and Noel Grealish, continue to support the government as independent Teachta Dálas (TD), and Mary Harney also continues as Minister for Health and Children.
In 1990 Wilson challenges Brian Lenihan for the Fianna Fáil nomination for the 1990 presidential election. Lenihan wins the nomination but fails to be elected President and is also sacked from the government. Wilson is then appointed Tánaiste. He remains in the cabinet until retirement in 1993. Although the 26th Dáil Éireann is dissolved in December 1992, he serves in Government until the new government takes office.
John Wilson dies at St. James Hospital, Dublin on July 9, 2007, one day after his 84th birthday. His funeral takes place at the Good Shepherd Church at Churchtown, Dublin. President Mary McAleese is one of a number of prominent figures among the mourners, while Taoiseach Bertie Ahern is represented by his Aide-de-Camp.