The European Commission urged estranged Cypriots on Thursday to seize a "historic chance" to reunite their island, split by a conflict spanning decades and troubling Turkey's bid to join the EU.
Commission President Jose Manuel Barroso also said the bloc may be willing to consider aid to Cyprus required in the event of a reunification deal.
"There is a unique chance this year to bring an end to this long-running conflict on European soil," Barroso told journalists. "This chance must be taken."
Cyprus was divided in a Turkish invasion in 1974 after a brief Greek-inspired coup. Turkey's entry to the European Union partly hinges on a peace deal in Cyprus, whose Greek Cypriots represent the island in the bloc.
The Greek and Turkish Cypriot communities started reunification talks last year, in the latest bid to solve a problem which has defied legions of diplomats.
Previous reunification efforts on Cyprus collapsed in 2004 when Greek Cypriots rejected a settlement blueprint accepted by Turkish Cypriots.
Present talks are focused on trying to find a power-sharing formula between the two communities in a future federation, territorial adjustments and restoring property rights for thousands of people displaced in past conflict.
Any deal must be ratified in a referendum by the two communities.
Diplomats are anxious for a deal before Turkish Cypriots go to the polls next April to elect a new leader.
Right wingers backing a two-state arrangement won Turkish Cypriot parliamentary elections in April by a considerable margin over the party backing Mehmet Ali Talat, the incumbent Turkish Cypriot leader widely considered a moderate.
Past assessments of reunification costs have been varied, ranging anywhere between 5.9 billion euros ($8.22 billion) to 28.2 billion euros ($39.29 billion).
The government-controlled part of Cyprus has an economy poised to register the only growth rate in the 16-member euro zone this year, while north Cyprus expects negative growth rates and is heavily reliant on cash handouts from Turkey.
Asked if the EU was willing to financially support a peace arrangement, Barroso said: "Of course, if there is a settlement, I cannot commit specifically, but I am sure that we could work with other member states to find some way to support this process."
Cyprus's internationally recognised Greek Cypriots say they will never allow Turkey to join the bloc as long as the island is partitioned. Ankara's EU membership talks, which started in Oct. 2005, have been partially frozen because of the situation on the island.
Turkey's progress in membership talks will be assessed later this year.
