Malta aims for deficit at 2.3 percent

VALLETTA, Malta (AP) — The Maltese government on Monday said it hopes to cut the country's deficit to 2.3 percent of GDP in 2012, following a warning from the European Union that the tiny eurozone nation risked sanctions.

The figure comes well within the recommendations made by the European Commission.

Last week, Malta was one of five countries warned by EU Monetary Affairs Commissioner Olli Rehn that they risk sanctions unless they bring down their deficit and debt levels under control.

As of the end of October, Malta's projected deficit for 2011 stood at 3.5 percent of GDP, above the 3 percent mark acceptable to the EU. Its debt is on …