European Commission President Jose Manuel Barroso has welcomed Cyprus into the euro zone as from Jan. 1, 2008, a step he believes will bring the easternmost EU state to "the very heart of the European Union."

    In a written statement, Barroso said the adoption of the euro marks a new chapter in Cypriot history, the semi-official Cyprus News Agency reported on Wednesday.

    "This momentous step will bring Cyprus to the very heart of the European Union. It means that Cyprus has joined a world class currency and a powerful economic area of nearly 320 million citizens, with an almost 15 percent share of world GDP," he said.

    Barroso said the economic benefits of the euro will be substantial, as it will boost foreign direct investment and make Cyprus a more attractive trading partner.

    Statistics showed that more than half of Cyprus' trade in goods is with euro zone members while trade in services with the euro zone accounts for around 30 percent of the total.

    Meanwhile, Barroso noted, the accession to the euro zone will give Cyprus a greater say in international financial institutions and forums as well as greater sway within the European Union.

    "Cyprus will also gain membership of the Euro group at a time when the euro area finance ministers' group is exerting a growing influence over the direction of EU economic policy," he said.

    On the occasion of the New Year, the European Commission president also reiterated his wish for a speedy solution to the Cyprus problem that would allow the whole of Cyprus, the Greek Cypriot south and the Turkish Cypriot north where Turkish lira remains its official tender, to fully enjoy the benefits of membership of the EU and of the euro zone.