Press reports said the traffic problem was a major challenge for politicians seeking election as congestion was set to worsen with population growth in Luxembourg.
Luxembourg's transport ministry said it cost 491 million euros a year to run public transport, with ticket sales and subscribtions bringing in 40 million euros.
Georges Merenz, who heads the FNCTTFEL-Landesverband, Luxembourg's main transport union, expressed concerns that the government plan would lead to job losses if nobody was needed to sell tickets.
"As long as it is not cleared up, we cannot accept that," Merenz told AFP. He added he was also concerned people in rural areas would not benefit from free travel.
Tallinn's nearly 420,000 registered residents are entitled to ride all municipal busses and tramlines free of charge after buying a special green transport pass for just two euros (USD2.60).
Public transport was already free for senior citizens.
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