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Forest Fires: Like in other countries with very hot summers and seasonal drying of soils and vegetation, every year large areas of the Portuguese forest is destroyed. This has an important impact on the economy because many people and industries depend on forestry related activities. It is also a very dramatic ecological problem and a safety issue for the populations.
Portugal's Public Debt: The public debt exceeds 60% of GDP. This problem is a threat to the Portuguese economy and the State's financial sustainability.
Over-dimensioned Public Sector: The public sector has been generally considered a very large, expensive and inefficient part of the economy. An excess of public employees and useless bureaucracy results in the loss of millions of euros every year. Since the XVI Governo Constitucional government, headed by Prime Minister José Durão Barroso, to the XVII Governo Constitucional government, headed by Prime Minister José Sócrates (which created new rules and implemented reforms aiming at better efficiency, rationalized resource allocation, fight civil servant excedentary overcapacity (excedentários) and less bureaucracy for both citizens and companies - eg: empresa na hora[6], PRACE - Programa de Reestruturação da Administração Central do Estado[7], and SIMPLEX - Programa de Simplificação Administrativa e Legislativa [8], among others), the "public expenditure problem" has been a major concern in Portugal.
Corruption: Although being generally considered an honest hard-working people, corruption has become an issue of major political and economic significance for the Portuguese. The responsible authorities are trying to combat corruption before it increases further. Many abusive lobbies and corruption schemes are related to concessions, unclear approvals to contractors and economic groups, or job creation for and commercial agreements with friends and family members, mainly involving the huge public sector and companies. Some cases are well known and were widely reported in the media, such as the affairs in several municipalities involving town hall officials and businesspersons.