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Could legalizing cannabis help save the European economy?

The economic benefits of legalization and the impact on tax revenues

In recent years, cannabis sales to Colorado en California and Washington were higher than expected, resulting in very high tax revenues. In 2019, Colorado collected more than $ 302 million in medical and recreational herb taxes and fees. Sales in the state were over $ 1,7 billion. Sales in the United States were $ 12,2 billion in 2019, and are expected to reach $ 31,1 billion by 2024. Local research recently revealed that the legal cannabis industry has contributed to the local economy to the tune of more than $ 80,8 million in 2017, mainly through taxes and other charges.

Income and employment : A survey report on Nevada indicates that recreational legalization in the state could support more than 2016 jobs through 41000 and generate more than $ 2024 billion in labor income.

Investment opportunities : Legal cannabis presents the potential for huge savings to local and national economies. It could also help secure the investment portfolios of investors across the country and beyond. While investors have the option of working with over-the-counter exchanges, many of the most successful companies in the legal cannabis arena have been based in Canada or other countries.

Money savings : Currently, the fight against drugs at the federal level costs several billion dollars a year. According to a 2013 report, the costs then amounted to about $ 3,6 billion per year. The more states that legalize cannabis, the lower the cost of law enforcement will be. If weed were removed from the list of controlled substances, far fewer lawsuits would be brought against it, which would reduce the number of incarcerations and, therefore, save money.

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Legalization should also benefit consumers of cannabis-based products for medical purposes.

May 2020: The total global cannabis market (regulated and illicit) is estimated at US $ 344 billion.

The European cannabis market is predicted to grow into a $ 136 billion industry by 2028. This is more than four times the expected market value of the US cannabis market, which is estimated to be worth $ 30 billion. by 2025.

As of February 2019, $ 555 million had already been invested in the European cannabis market. Europe is expected to become the world's largest legal cannabis market within the next five years, mainly driven by the medical sector, which is expected to reach up to $ 64 billion by 2028.

Europe dominates the medical cannabis sector

Industry leaders like Germany, Italy and the Netherlands have focused on expanding existing medical cannabis programs.

Germany and Italy are both leaders in the global medical herb market. With a budget of $ 1 trillion for healthcare spending, the two countries are well positioned to be leaders in the cannabis market. For example, Italy, which legalized medical cannabis in 2013, ahead of many other European countries where cannabis is legal, is expected to generate sales of around $ 1,2 billion by 2027.

There are already a lot of consumers in Europe

With more than 747 million inhabitants (more than twice the size of the American and Canadian populations combined), Europe is expected to drive much of the global demand. In fact, conservative estimates reveal that 23 million people in the European Union already use cannabis recreationally, meaning that around 3,3% of all Europeans already use cannabis regularly.

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European hemp market on the rise

Today, the industrial hemp industry in Europe is worth at least $ 1 billion, which is a large chunk of the value of the global hemp industry, currently valued at around $ 3,7 billion. The main players in the European hemp market are France, which accounts for almost half of the total European hemp production, the Netherlands, Lithuania and Romania.
Estonia has also invested significant sums in this sector, and the region is expected to become the second largest producer of hemp after France.

It only remains to act : Collect a million signatures and ask the EU a new law, it is open to all EU citizens. Once we achieve this, we will initiate a process for the passage of a new law that will legalize the production and sale of cannabis for medical or recreational purposes.

Emergency?

  • The GDP (gross domestic product) of the European economy decreases by 3,8
  • The European Union has lost 3,5% of its gross domestic product.
  • The French and Spanish economies contracted by 5,8% and 5,2% in the first quarter of 2020.
  • German retail turnover plunged into its largest monthly decline since January 2007.
  • During the first three months of the year, the euro area economy experienced its fastest decline on record.
  • The economic damage caused by the coronavirus crisis in the Amsterdam metropolitan area amounts to 2,3 billion euros per month.


Tags : Businesscoronavirus / COVID-19CareersEuropeTaxProhibition
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The author weed master

Weed media broadcaster and communications manager specializing in legal cannabis. Do you know what they say? knowledge is power. Understand the science behind cannabis medicine, while staying up to date with the latest health related research, treatments and products. Stay up to date with the latest news and ideas on legalization, laws, political movements. Discover tips, tricks and how-to guides from the most seasoned growers on the planet as well as the latest research and findings from the scientific community on the medical qualities of cannabis.