Luxembourg's transport ministry said it cost €491 million a year to run public transport, with ticket sales and subscriptions bringing in €40 million.
The move to make all public transport in Luxembourg free is aimed at reducing the country's traffic congestion.
Next summer, commuters in the tiny European country of Luxembourg may be able to use buses, trams and trains for free. Earlier this year, a new initiative allowed people under 20 years to travel for free and commuters to only pay €2 (about $2) for up to two hours of travel, which covers most of the tiny country. On average, it's estimated that drivers in Luxembourg City spend an average of 33 hours in traffic in 2017.
Now, from the start of 2020 all tickets will be abolished, saving on the collection of fares and the policing of ticket purchases.
Students in secondary schools also have shuttles which ferry them from home to school and back for free.
Michigan Republicans following Wisconsin's lead in curbing Democrats' power
The Assembly approved it on a 56-27 vote about two hours later, sending it on to Walker, with one Republican, Rep. Walker is getting bipartisan pressure to veto the measures, including from Democratic Gov. -elect Tony Evers .
Mr Bettel has also promised to legalise cannabis, introduce two new public holidays and increase investment in public services.
Currently, fares are capped at €2 ($AUD3.15) for up to two hours of travel, which in the small European nation covers nearly any journey.
The foreign policy of the European Union's wealthiest but second smallest state is unlikely to change much, with Jean Asselborn keeping his post as foreign minister while Pierre Gramegna remains finance minister in the new administration. But no other nation has eliminated fares from its entire transport network.
Bettel only just scraped back into government in the recent election.
However, because the Greens gained, the three parties in government have 31 seats in the 60-seat chamber.