This country to have free public transport for all

Luxembourg To Make All Public Transport Free Across The Country

Fares on trains, trams and buses will be lifted next summer under the plans of the re-elected coalition government led by Xavier Bettel, who was sworn in for a second term as prime minister on Wednesday.

According to The Independent, Luxembourg's transport system costs close to €1bn per year to operate, but as a result of the concessionary offers, fares amount to only €30m annually.

Bettel, whose Democratic party will form a government with the left-wing Socialist Workers' party and the Greens, had vowed to prioritise the environment during the recent election campaign.

The transport policy was formulated in response to the traffic congestion being experienced in landlocked Luxembourg.

Some 400,000 commuters flock to the city for work while 200,000 from neighbouring cross the border France, Germany and Belgium every day.

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.

"I'm not sure if making public transport free here in Luxembourg will take more people out of their cars", he said.

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As well as free public transport from 2020, Bettel had also promised to invest more in public services and to legalise recreational use of cannabis.

There is already free transport for under 20s while secondary school students can use free shuttles between schools and their homes.

There are a few issues to be sorted out before fares are abolished, such as what to do about first- and second-class train compartments.

The new government coalition only just scraped through with 31 out of 60 seats in Chamber which might present a challenge when it comes to passing new, out-of-the-box policies and legislation.

The Christian Social People's Party (CSV) - which was led for 19 years by European Union chief executive Jean-Claude Juncker - remained the largest party in parliament, but lost seats, as did the LSAP and the Democratic Party.

The CSV, however, lost seats, while the Greens gained three seats. The new government also plans to introduce two new public holidays.

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