As recently pointed out by the European Commission, Greece needs additional public and private investment in transport, solid waste and industrial sewage treatment, water supply, infrastructure and energy network connectivity, mainly between island regions and mainland Greece, in information and communication technology (ICT), and in innovation, education and training.
However, preliminary results for FY06 outcome do highlight some short-term risks and vulnerabilities. The fiscal deficit is expected to exceed target in FY06, because of the unanticipated earthquake spending and continued stagnating of the tax/GDP ratio, despite enhanced tax collection.