The groundbreaking ceremony for the Brenner Base Tunnel (BBT) which will connect Italy and Austria was held in Innsbruck, Austria on April 18.
The project is expected to be completed in 2025, when the tunnel will be open to high-speed passenger trains, as well as to freight trains.
The EU transport commissioner Siim Kallas said, "In these economically difficult times, investing in a sustainable European transport policy is more important than ever... the Brenner Base Tunnel will deliver a crucial contribution for rail transport to play its part in more resource efficient and sustainable alpine transport."
The 55 km Brenner Base Tunnel will be the longest railway tunnel ever built, halving the travelling time between Verona in Italy and Munich in Germany to just three hours.
The whole project will cost about €9 billion, including €7.5 billion for the tunnel and the rest for related infrastructural works. The EU has scheduled initial funding of $756 million from now to 2014, while further expenditure will be allocated in due course.