China has signed an agreement with the governments of Serbia, Hungary and Macedonia for the construction of a new high-speed railway between Belgrade and Budapest.

Speaking after the signing ceremony, Chinese Premier Li Keqiang said the railway would be complete within the next two years. Feasibility studies are expected to to be carried out by June next year and the project completed by June 2017.

The new 200km/h line will reduce travel times from eight to around two-and-a-half hours between the two capital cities.

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