Baltic ro-pax operator Scandlines has won an appeal against the funding of an 18km tunnel connecting the Danish and German islands of Lolland and Fehmarn.
It said the Court of Justice of the European Union (CJEU) has cancelled approval for the Fehmarn connection’s financing model.
"Without an approved financing model for the Fehmarn tunnel, the project has practically come to a stop," it added.
The model was adopted by the European Commission in 2015.
Scandlines claimed there had been no formal procedure or involvement of private and public companies.
"Scandlines is not against a Fehmarn connection established with state aid. State aid may be necessary when completing such large-scale projects. However, we do expect correct procedure, which entails transparency and fair competition," said Scandlines CEO Soren Poulsgaard Jensen.
"It is decisive for us that the tunnel cannot use the state finances as its sees fit to impose taxpayer-financed price pressure when traffic volumes do not live up to the optimistic prognoses and the ferries appear competitive.
"For the Commission, this is basically a ‘do-over’ with a three-year delay. It is better late than never, but it is thought provoking that we as a private company have to spend time and money on ensuring that the EU Commission complies with applicable rules."
