All residents of Serbia's capital Belgrade will get a special New Year gift: free public transportation starting Jan. 1, Mayor Aleksandar Sapic announced on Wednesday.

The initiative is part of a broader strategy to modernize the city's transport system, making Belgrade the largest European city to offer free transit to its two million residents, Sapic said at a press conference.

Belgrade also plans to upgrade its public transport fleet, aiming to replace all vehicles within three years. By the end of 2025, all vehicles in operation will be less than two years old, according to the mayor.

Previously, the city introduced a 30-percent reduction in fares. Currently, passengers pay around 0.45 U.S. dollars for a 90-minute ticket or 1.09 U.S. dollars for a daily ticket, granting access to buses, trams, and trolleys.