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The centre, which has been 15 years in the making, is the largest arts centre in western Europe and covers five-and-a-half acres of Cripplegate, which was destroyed by Nazi bombers in World War II.
The new multi-million pound building will provide a new home for the Royal Shakespeare Company and the London Symphony Orchestra.
Both have performed inaugural concerts for the Queen this evening.
The centre also houses a concert hall for 2,000 people, two theatres, a cinema, a library, a conference centre and several galleries.
'Wonder of the modern world'
The Queen was welcomed by the administrator of the centre, Henry Wrong.
As she unveiled a plaque commemorating the opening of the Barbican, the Queen said: "What has been created here must be one of the wonders of the modern world."
More than 3,500 people arrived for the opening night celebrations which culminated in a spectacular fireworks display over the centre's lake.
Plans for a new arts centre at the Barbican were originally given the go-ahead in 1971 when it was proposed that construction would cost �17m and would take six years to complete.
In Context
By the 20th anniversary of its opening, the Barbican had welcomed more than 27 million visitors.
It has become a leading venue for classical music and was home to the Royal Shakespeare Company until May 2001.
In 2003 a survey commissioned by advertising agency Grey London, named the Barbican as the city's ugliest building.
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