Alpine tunnel agreed despite protests

Protesters say the tunnel will cause environmental damage

TURIN, Italy -- France and Italy have agreed to build a $10 billion rail link under the Alps despite protests from environmentalists.

The first trains could be speeding through the 52 kilometre tunnel, from Turin to Lyon, by 2015.

France and Paris say the tunnel -- one of the largest engineering projects in Europe -- will cut the number of big trucks driving along Alpine routes.

But protesters, who clashed with police outside the talks venue in Turin, said the scheme would damage the environment west of the Italian city.

French President Jacque Chirac said: "An historic decision has been taken. The economy called out for this link and the people (of the region) wanted it."

The railway will involve carving a tunnel under mountain hamlets in the Valle di Susa, between Turin and the French border.

Up to 2,000 people marched through Turin amid heavy security to protest against the rail link. Police and protesters scuffled before the crowd broke up.

The project would allow for the transportation of about 40 million tons of freight per year on a 187-mile link, including the Alpine tunnel section.

Officials say the tunnel will slash the four-hour travel time between Lyon and Turin and will be key to cutting the number of big trucks on the roads.

The European Investment Bank (EIB) said in Rome on Monday that it would help finance construction of the new high-speed rail link.

At the talks in Turin, French President Jacques Chirac and Italian Premier Guiliano Amato also announced the Mont Blanc road tunnel would re-open in September, two years after a blaze killed 39 people.

The fire broke out in the seven-mile-long tunnel in March 1999 and burned for two days as firefighters try to reach cars and people trapped inside.

Work began last year on renovating the tunnel and improving safety provisions.

"We have a deal. The tunnel will open in September," Italian Public Works Minister Nerio Nesi said.

The Mont Blanc closure had shrunk Italy's net trade balance with France by 420 billion lire ($199.5 million), the Italian Foreign Ministry said.

The closure of the 11.6-km tunnel hit the economies of Italy's northern regions hard and meant higher costs and longer routes for Italian hauliers.

Italy and France also signed a deal to work on what was termed a "dual-purpose" satellite, to be used for both civilian and military aims. France would focus on optics, Italy on radar.

The satellite would be used for military purposes, the development of agriculture and disaster prevention.

The Associated Press & Reuters contributed to this report.

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