Luxembourg is set to become the first country in the world to make all its public transport free.
The move, which is scheduled to come as a major relief to Luxembourgers during next summer, shall witness fares lifted on trains, trams and buses, The Guardian reported.
Some places around the world offer free transport in a bid to reduce traffic congestion, and in some USA counties the bus system is free, but no other nation has eliminated fares from its entire transport network.
Some 400,000 commuters flock to the city for work while 200,000 from neighbouring cross the border France, Germany and Belgium every day.
European Union's wealthiest country, Luxembourg's Prime Minister Xavier Bettel has made history after announcing his plans to make public transport free in 2020. Earlier this year, free transport was introduced for all citizens under the age of 20. The new government also plans to introduce two new public holidays.
Currently, fares are capped at €2 ($AUD3.15) for up to two hours of travel, which in the small European nation covers nearly any journey.
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High school students are also provided with free shuttle services between school and their homes.
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The national transport system now costs around €1billion to operate, yet fares only amount to €30million annually, The Independent reports.
In order to fund the initiative, a percentage of the cost will be covered by removing a tax break for commuters.
No decision has yet been taken on what to do about first- and second-class compartments on trains.
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.