Luxembourg is to become the first country in the world to scrap fares on all public transport.
plans, introduced by Prime Minister Xavier Bettel's coalition
government, will see trains, trams and buses run free of charge from
Bettel, (pictured) who took office for a second term on Wednesday, made environmental protection a key part of his election campaign.
His Democratic Party will form a government with the left-wing Socialist Workers’ party and the Greens.
Currently, fares are capped at €2 for anything up to two hours of travel, which covers most journeys in the 2,585 km² nation.
City, the landlocked country's capital, is home to around 107,000 but
sees 400,000 commuters cross its borders every day to work, causing some
of the worst congestion in Europe.
Part of the cost for the initiative will be footed by removing a tax break for commuters.
has previously shown it has a forward-looking attitude towards
transport — over the summer, the government introduced free transport
for young people under the age of 20.
Secondary school students are also provided free shuttle services between their places of study and homes.