[VIDEO] Joseph Muscat talks money on Fox News

It's not the amount of deficit that counts but how the government spends its money, Prime Minister Joseph Muscat said on Fox News.

"I believe that the way you spend your money is more important than the amount of deficit," Muscat said during a three-minute interview on Cashin' In.

With a deficit amounting to $17 trillion, Muscat acknowledged that whatever occurred in the U.S. affected everyone - whether it was a small state like Malta in the middle of the Mediterranean or elsewhere in Asia.

"I believe the most important thing is to be spending your money wisely and not just throwing it to the dogs," Muscat told host Eric Bolling.

With a deficit amounting to 3.3% of the country's GDP, Malta itself was facing pressure by the European Union to reduce it to below the 3% mark. The government is confident it will reach this target by the end of year.

Asked to explain how Malta kept attracting foreign investment while fellow EU member states faced hurdles, Muscat said the country was "blessed" with a very important strategic position.

"We are placed in Europe but also at the centre of the Mediterranean. Companies that want to penetrate both the European and North African markets have a safe haven where to invest," he said.

By investing in Malta, a company would not only be part of the European market but also 30 minutes away from Libya, or an hour way from Egypt or Tunisia.

"Malta is the perfect place where to position your headquarters and where to service North African countries from just one place."

With an unemployment rate at 6.6% - lower than America's - Muscat explained Malta was small enough to be more flexible.

"I believe this flexibility is giving the results, even though we can do better and we will do better," he said.

The Maltese government was now positioning its economy as part of the global market, rather than limiting to the European market, which would in turn improve the situation.

On the conflict in Syria, the Maltese Prime Minister believed the international community's decision on the situation was heading in the right direction.

"A multilateral approach is the most desired approach, especially for us in the region. While the US has provided a good leadership, a United Nations approach and rubber stamp are important."