Premier Wen Jiabao greets German Chancellor Angela Merkel in Beijing on Thursday. Both leaders said they were confident of economic recovery in Europe. [China Daily]

China may offer rescue funds to Europe, Premier Wen Jiabao said after meeting German Chancellor Angela Merkel on Thursday.

Wen said it was "urgent" to solve the European debt crisis, and China is willing to "involve itself more" in efforts to resolve Europe's debt issues through the International Monetary Fund, the European Financial Stability Facility and the European Stability Mechanism.

The mechanism is a $650 billion permanent bailout fund signed by 25 out of 27 European Union members on Monday.

It will become operational in July to take over from the facility, a temporary fund that has so far been used to bail out Ireland and Portugal.

Wen made the remarks during a joint news conference with Merkel, who started a three-day official visit to China on Thursday.

Wen stressed that efforts made by European countries are the key to resolving the debt issue, and indebted countries should implement proper financial policies that are in line with their real national situations.

"The EU, as a whole, in addition to bailouts, should continuously promote structural and systematic reforms in their financial and other areas, and give the international community a unified and clearer indication on how they will resolve the issue," Wen said.

"China is willing to enhance its communication with Germany via the existing bilateral mechanism of financial cooperation, and is also ready to keep in close touch with all the other parties concerned to address the issue," he said.

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