This country to have free public transport for all

Luxembourg is set to become the first country to abolish all public transport fares. Earlier this year, a new initiative allowed people under 20 years to travel for free and commuters to only pay €2 (about $2) for up to two hours of travel, which covers most of the tiny country.

Luxembourg's transport ministry said it cost €491 million a year to run public transport, with ticket sales and subscriptions bringing in €40 million.

Mr Bettel's Democratic party is to form a government with the left-wing Socialist Workers' party and the Greens after he secured a narrow victory in October.

Secondary school students are also provided free shuttle services between their places of study and homes.

While the country as a whole has 600,000 inhabitants, almost 200,000 people living in France, Belgium and Germany cross the border every day to work in Luxembourg.

The move is also aimed at reducing traffic congestion by encouraging the use of public transport instead of private cars.

The finer details are yet to be determined, including what do about first and second- class carriages on trains.

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.

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 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.