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He said that China will forge closer communication and coordination with the European side on the issue.

Wen said private capital should be encouraged to flow to fields such as finance, energy, transport and social services, "which can not only alleviate the difficulties of economic development but also accelerate the development of these causes," he said.

In another meeting with EU foreign policy chief Catherine Ashton, Wang said China's development has benefited from Europe's experience.

The consumer price index, a main gauge of inflation, grew 5.4 percent year-on-year in 2011, well above the government's full-year target of 4 percent, pushing up both corporate and people's living costs.

Last March, the central government issued a blueprint on reform of government-financed institutions, a move described as a new, strategic step by the official.