New German Government to Legalize Cannabis

Germany’s incoming coalition government has announced a formal agreement to legalize the sale of marijuana for recreational purposes, according to multiple news sources.

The plan will allow for the introduction of “the regulated sale of cannabis to adults for consumption purposes in licensed stores,” with the aims of ensuring quality control, preventing distribution of contaminated products, and guaranteeing the protection of minors, a coalition statement said.

It is unclear whether Germany’s new coalition government of the pro-business Free Democrats, the left-leaning Social Democratic Party, and the Green have plans to legalize the cultivation of cannabis.

Personal possession of cannabis is already decriminalized in Germany, as is marijuana for medical use.

In an agreement translated from German and widely circulated in the media, the coalition said that the legislation will restrict advertising for marijuana, alcohol, and tobacco products.

“When it comes to alcohol and nicotine prevention, we rely on increased education with a special focus on children, adolescents, and pregnant women. We are tightening the regulations for marketing and sponsoring for alcohol, nicotine and cannabis,” the agreement stated.

The coalition said it will also promote further policy reforms, such as testing services for contaminants and other harmful substances in illicit drugs.

The move to legalize cannabis could provide Germany with more than €4.7 billion ($5.3 billion) in additional tax revenue annually, Politico reported, citing a study by the University of Dusseldorf.

German drug reforms are likely to be a boon for U.S. and Canadian cannabis firms that already have foothold in Europe in anticipation of a bigger medical and recreational market, Bloomberg noted.

Curaleaf Holdings, the largest multi-state operator in the U.S., is invested in the German market, positioning itself to capitalize on reforms like the pending legislation from Germany’s new government. Canadian operators Aurora Cannabis and Canopy Growth already serve the German medical market.

Public opinion in Germany has shifted toward cannabis legalization in recent years, with 49 percent in favor and 46 percent against, per an October survey by the German Hemp Association.

Similar reforms are being mulled throughout Europe.

In neighboring Luxembourg, the government announced in October that adults will be permitted to grow up to four cannabis plants in their homes or gardens for personal use, making it the first country in Europe to legalize cultivation and consumption.

In Italy, where personal use is decriminalized and medical use is legal, a referendum is likely to decide upon legalizing personal use and cultivation of cannabis, while the Swiss government is debating regulating the cannabis market and lifting a ban on personal use.