Luxembourg is to become the first country in the world to make all public transport free.
All fares for trains, trams and buses will be scrapped by next summer as part of a new environmental initiative, Xavier Bettel, the prime minister, announced.
Luxembourg City, the capital, suffers from some of the worst traffic congestion in the world, with one study showing that drivers spent an average of 33 hours in traffic jams in 2016.
Despite its tiny population of 110,000 people, some 400,000, including those from the bordering countries of France, Belgium and Germany commute to the capital city for work.
Mr Bettel was sworn in for a second term on Wednesday, having promised to prioritise environmental issues.
Annually, Luxembourg’s national public transport system costs about €1bn to run.
Georges Merenz, who heads the FNCTTFEL-Landesverband, Luxembourg’s main transport union, expressed concerns the government plan would lead to job losses if nobody was needed to sell tickets.
“As long as it is not cleared up, we cannot accept that,” Mr Merenz told AFP.
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