Luxembourg City, the landlocked country's capital, is home to around 107,000 but sees 400,000 commuters cross its borders every day to work, causing some of the worst congestion in Europe.
To the benefit of its people, Luxembourg has adopted a progressive attitude in addressing transportation.
Fares are now capped at two euros for two hours of travel, which in a small European nation of just 999 sq miles (2,590 sq km) covers most journeys. It's an extra €1 to upgrade to first class, while an all-day second-class transport ticket on any form of transport costs €4.
Around 110,000 people live there but another 400,000 commute in for work every day, while almost 200,000 cross the border from neighbouring France, Belgium and Germany.
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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. A recent study cited by The Guardian showed that drivers in the capital spent an average of 33 hours in traffic snarl-ups in 2016.
From next summer, fares on trains, trams and buses will be scrapped under plans by recently re-elected prime minister Xavier Bettel, who vowed to make the environment a key part of his campaign.
The move will also save on the collection and processing of fares and the policing of ticket purchases.
Opinion polls before October's poll had indicated that the Christian Social People's party (CSV) - led for 19 years by the European Commission president, Jean-Claude Juncker - would end Bettel's five years as prime minister.