The country has a population of almost 600,000 - but its capital, Luxembourg City, has some of the worst traffic congestion on the planet.
Luxembourg is set to become the first country in the world to make all its public transport free.
It is home to about 110,000 people, but a further 400,000 commute into the city to work.
The country's total population is around 600,000, but around 200,000 living in the three neighboring nations cross the border each day to work in the tiny state.More news: SpaceX's Falcon rocket ditches in water after sending cargo to ISS
Aside from free public transport, Bettel's coalition government seeks to legalize the purchase, possession and consumption of cannabis for recreational use, as per the publication.
Children and young people under the age of 20 already ride free on public buses, trams and trains in Luxembourg, thanks to a policy change introduced by Bettel's government earlier this year.
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.
And secondary school students are provided with free shuttles between their places of study and their home. The two-time prime minister promised voters that environmental concerns would be of paramount importance while he remained in office, The Guardian reported.More news: President George H.W. Bush’s Service Dog ‘Sully’ Salutes Companion At Capitol
Currently, fares are all capped at a low level of €2 for up to two hours of travel, which covers nearly any journey in the small nation - which is about the same size as Oxfordshire.
According to The Independent, Luxembourg's transport system costs close to €1bn per year to operate, but as a result of the concessionary offers, fares amount to only €30m annually.
There are a few issues to be sorted out before fares are abolished, such as what to do about first- and second-class train compartments.More news: Jake Gyllenhaal Confirms Villain Role in ‘Spider-Man: Far From Home’