Fares on trains, trams and buses will be scrapped next summer under the re-elected coalition government’s plans.

Prime minister Xavier Bettel, who was sworn in for a second term on 5 December, pledged during the election campaign to prioritise the environment. His Democratic party will form a government with the left Socialist Workers’ Party and the Greens.

Under the free transport plans, tickets will be abolished from the beginning of 2020. However, the policy has yet to be finalised as the government still needs to decide what to do about first and second-class compartments on trains.

Luxembourg City, the capital of the small Grand Duchy, has some of the worst traffic congestion in the world.

About 110,000 people live in the city, but a further 400,000 commute to Luxembourg to work.

In the summer of this year the government introduced free transport for every child and person under the age of 20. Students in secondary school can also use free shuttles between their institutions and home.

Transport in Luxembourg is already relatively cheap compared to other European countries. Commuters only need to pay €2 for up to two hours of travel.

The new government is also contemplating introducing two new public holidays and legalising cannabis.