As the centre-left Socialist victory in the October 6 general election fell short of producing an outright majority government, caretaker Prime Minister António Costa is considering practical options.
Costa has ruled out the written alliance the Socialists had for the last four years with the far-left.
The Socialists may be able to arrange a less formal pact on specific issues with either or both the Left Bloc and the Communist Party.
The absence of a formal alliance with the far-left could also make it easier for the centre-left to join forces with their old mainstream rivals, the centre-right.
Uncertainty exists but compromises seem to be on the cards and inter-party discussions are presently ongoing.
This will be good news to Socialists in other countries in the European Union that have been sidelined in recent years, particularly by right-wing Populists.
Meanwhile, international investors do not seem worried about Portugal’s current political uncertainty.