All public transport to be free in Luxembourg in a world first

A file image of congested traffic in Sydney

The move to make all public transport in Luxembourg free is aimed at reducing the country's traffic

Luxembourg is set to abolish all fares on public transport across the country, the Independent reports.

The tiny country of just 2590 square kilometres is home to about 110,000 people, but an additional 400,000 travel to the city for work.

Currently, commuters pay just £1.78 for two hours of travel - but even this low fare will be scrapped under the plan.

The newly elected government in Luxemborg has promised to offer free public transport beginning next summer.

A study suggested drivers in the capital spent an average of 33 hours in traffic jams in 2016.

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Around 200,000 others cross the border to Germany, France and Belgium daily. It hopes that free public transportation will encourage commuters to take buses and trains instead of clogging roads with their cars. But details of the plan still require some hashing out as there's yet to be a decision on what to do about the existing first- and second-class compartment on some trains.

Other than their transport promise, Bettel's new coalition government says it is also considering the legalization of cannabis and the introduction of two new public holidays, including "Europe Day" on May 9.

The national public transport system now costs around €1 billion ($1.13 billion) each year to operate, but only recoups around €30 million ($34 million) in fares, The Independent explained. During his election campaign, Bettel also emphasized the importance of environmental protection.

The CSV, however, lost seats, while the Greens gained three seats.

He now holds 31 seats in the 60-seat chamber, with Mr Bettel's Democratic Party gaining 12 seats and the Socialist Workers' Party and Greens achieving 10 and nine seats respectively.

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