Instead of head-on confrontation, the left is trying to maneuver while strengthening its base by improving people's lives.
Antonio Luis Santos da Costa of the Socialist Party, forms a government with the support of the Communist, Ecologist (Green) and Left Bloc deputies in the national parliament.
In Portugal there is a presidential election in January 2016, in which Cavaco Silva's actions will surely be an issue.
The question of whether Prime Minister Pedro Passos Coelho will stay on, and on what basis, is the subject of intense negotiations.
Austerity as a strategy is more than just throwing a scare into countries, it is also undermining the social contract between labor and capital that has characterized much of Europe for the past two generations.
The decade 1964-74 marks the wars of independence for Portuguese colonies of Guinea-Bissau, Angola, and Mozambique, and islands of Cape Verde and São Tomé e Príncipe.
The people of Portugal had a chance to respond to the austerity policies carried out by the right-wing coalition government of Prime Minister Pedro Passos Coelho.
Hundreds of thousands of workers, students, pensioners, and others marched against the right-wing government of Prime Minister Pedro Passos Coelho and his enablers.
Unions say Portugal's prime minister is "living on another planet" after he predicted investment in the crisis-hit economy would bounce back next year.
Portugal has become the first European country to approve the European Union's fiscal compact, known to critics as the "permanent austerity" treaty.