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Luxembourg set to become first country to provide free public transport

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Luxembourg Prime Minister Xavier Bettel

As of this summer, anyone under the age of 20 can travel free in Luxembourg, while an annual "mPass" for commuters.

Luxembourg is a small European country surrounded by Belgium, France and Germany.

Luxembourg is set to become the first country in the world to make all its public transport free.

Apart from providing free public transport, Bettel's coalition government also intends to legalise cannabis and introduce two new public holidays.

It is home to about 110,000 people, but a further 400,000 commute into the city to work.

Mr Bettel was sworn in for a second term on Wednesday, having promised to prioritise environmental issues.

It's understood abolishing all public transport fares will save the government money on the collection and processing of fares.

Currently, commuters only have to pay €2 (about P120) for up to two hours of travel, the report stated. The move is aimed at alleviating traffic congestion and furthering Bettel's campaign vow of being environment-friendly.

A free shuttle service is provided for secondary school students between their homes and school and earlier this year free transport was introduced for under 20s. For example, a decision still needs to be taken on what to do with first- and second-class compartments on trains.

The national transport system now costs around €1billion to operate, yet fares only amount to €30million annually, The Independent reports.

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. It now holds 31 seats in the 60-seat chamber-12 for Bettel's Democratic Party, 10 for the Socialist Workers' Party and nine for the Greens.

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