The 19 km (11.8 mile) Fehmarnbelt link was supposed to be constructed in 2024, but the project has been previously delayed due to environmental protests in Germany.
Berlin has approved 52.6 billion Danish crowns (€7 bln or $8 bln) rail and road tunnel that would link the Danish island of Lolland to the German island of Fehmarn.
“This is the result of several years of cooperation between the parties involved in Denmark and Germany”, Claus Dynesen, project director at Femern A/S company, responsible for the construction, said in a statement.
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Now the firm has 14 days to review the approval from Schleswig-Holstein’s authorities before it is signed.
The new rail and road tunnel to speed up connections from the German cities of Hamburg, Bremen, and Hannover to the Danish capital, Copenhagen, and the Swedish city of Malmo.