The pitch can't be an excuse, of course, but at the same time there must be some minimum requirements for a competition like a Euro Cup.
I'm not talking about the pitch the other day because I didn't watch the match, I'm talking in general. So don't get personal with the next paragraph because I'm talking about things we all have seen now and then and it's not directly related to the Bosnia-Portugal match, because I don't have enough info to judge about that.
If a pitch is lacking big chunks of grass and has holes, to me it's unacceptable, because it can inflict injuries to players. I don't care much about how big is a federation. Federations have more money than it seems. Or at least they have enough money to choose a good pitch (I can't believe there aren't better pitches in a whole country).
Federations send a lot of people on vacations to the big tournaments, their representatives travel with their wives and friends when they go abroad, and they earn money, more than most of us will earn with our work. They earn money with sponsors, from revenue, they receive some money from UEFA and they can even have some kind of local government investment.
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You are wrong on the bit in bold, and seem to be saying it from a Spanish (i.e. big rich federation) viewpoint, but if you look at the whole picture its a lot more complex. In fact as an illustration, there is actually a team that had to withdraw from WC2014 qualification after the draw was made as they simply couldnt afford to travel to their oppenents. A month ago Mauritius had to withdraw as they couldnt afford the costs of going to Monrovia (Liberia) since there were no direct flights and the trip would have blown their budget for the whole year. They had no option but to withdraw from the competition.
The big federations have lots of money from sponsorship, sure Spain, England, Italy, Argentina, Brazil, get a lot of money from big companies, eg Vauxhall (Opel), Coca Cola, Nike, Adidas, but the smaller nations don't get anything like this amount of money. How much do you think Legea pay Bosnia or Montenegro for kit compared with how much adidas pay Spain or Argentina, you know it will be much smaller.
Small nations in Europe (like say Faeroe Islands, San Marino, Malta, even the Baltic nations and to a lesser extent Bosnia, Montenegro) get some money via UEFA/FIFA but a lot of that will be spent on travel and insurance (to cover player injuries) for team matches. Unlike big nations (e.g. Spain, Argentina) they cannot command a big match fee for playing friendlies - Argentina and Brazil have got millions per game for playing friendlies in Asia, but will teams like Latvia, Malta etc command big fees for playing there - no chance. Some of these nations also have small stadiums (e.g. Estonia 10,800) and because the inhabitants aren't wealthy they charge very little for tickets (e.g. some Estonia tickets for their playoff were as cheap as 16EUR, this was the biggest game in the history of Estonia) - these nations cannot turn a profit on their games as they dont have enough seats in the stadiums.
You talk about local government investment, are you not aware of massive goverment debt (and the resulting budget cuts) all over Europe? Aside from that some of these small countries have minimal populations, and are still recovering from years of chronic underinvestment or the effects of war. Do you really think that the Bosnian goverment, which is already federated and so has two divisions, has enough spare money to spend on building massive stadium improvements ? The war there only ended in 1995, NATO is still there and there are other more pressing things to spend money on (e.g. removing mines, improving hospitals). A lot of the former Soviet states had cronic underinvestment during the latter stages of the USSR, there are so many other things to spend money on (healthcare, transport infrastructre, education) they also have aging populations and have to pay out state pensions to their elderly inhabitants and many of their most talented, educated young workers, who could be generating taxes, end up working abroad for more money, so there isnt even a big tax base to draw money from. Its a bit simplistic to say that small federations can just expect to be thrown goverment money.
