The physics base for the ITER Physics Design Guidelines is reviewed in view of application to DEMO and areas are pointed out in which improvement is needed to arrive at a consistent set of DEMO Physics Design Guidelines. Amongst the proposed improvements, the area of power exhaust plays a crucial role since predictive capability of present-day models is low and this area is expected to play a major role in limiting DEMO designs due to the much larger value of Ptot/R in DEMO than in present-day devices and even ITER.