Towards a Historic Turning Point
Germany is set to become the third European Union member state to legalize cannabis. Lawmakers across the country sought to come up with a plan that would satisfy all parties, and it appears they have found a potential solution. The Traffic Light Coalition (as it was named), formed by The Greens, the Social Democratic Party and the Liberals, announced last week that it had reached an agreement on the legalization of cannabis.
The law will be put to a vote this month, and legalization could come into effect as early as April. However, many politicians remain skeptical and plan to vote against the law.
Other EU member states to take the plunge are Malta and Luxembourg.
The German plan places emphasis on prevention and improving health, as well as the protection of children and youth. Additionally, the new bill, introduced last year by Federal Health Minister Karl Lauterbach, could also target issues related to the illicit market, a problem that has plagued many US states.
“The fight against the black market, decriminalization and better protection of minors will come to fruition. Previous drug policy has failed; a new beginning,” said Karl Lauterbach, Federal Minister of Health, on X.
According to Forbes, “Lawmakers recently revised the bill to ease restrictions challenged by supporters in the Bundestag. The changes include increasing home possession limits and eliminating the possibility of jail time for slightly exceeding the possession limit. The government coalition also plans to present a complementary measure establishing commercial sales pilot programs, which will be revealed after submission to the European Commission.
Niklas Kouparanis, co-founder and CEO of Bloomwell Group, said: “Health Minister Karl Lauterbach has not only announced the imminent adoption of a law, he is ushering in a new era of progressive drug policy. The era of the dysfunctional 'prohibit and punish' paradigm is coming to an end in our country. 2023 has been a stressful year for cannabis advocates, operators and patients, but it appears the most intense debates have been resolved, paving the way for the Bundestag to pass the law. The legislative process resulted in favorable outcomes for consumers, the medical cannabis industry and patients. The wait was worth it, and medical cannabis patients will happily be rewarded with the access and care they need. The Federal Council will no longer be able to block the law. The German Cannabis Act (CanG) is here to stay and will be adopted.”
Forbes also notes that the final reading in the Bundestag is expected in the week of February 19-23. The law could be adopted in the week starting February 19, passing the Bundesrat on March 22 with no expected obstacles. If all goes well, from April 1, adults could grow cannabis at home and possess small quantities, while cannabis clubs will be permitted from July 1.
Kouparanis adds: “Let's face it, there is still room for improvement. It will certainly take time for legalized cannabis clubs to produce significant quantities. There also remain questions to be resolved regarding the implementation of the pilot projects outlined in the second pillar of the legislation. And, of course, the long-term goal remains the legalization of the entire value chain for a full-fledged adult consumer market.”
Benefits for Canada
Green Market Report wrote in November that Canadian companies were most likely to benefit from initiatives in Germany.
The companies that are most likely to benefit the most from this legislative relaxation are:
- Tilray Brands
- curaleaf holdings
- Cronos Group
- Organigram Holdings
- Aurora Cannabis