Party leaders in Germany’s new government coalition have pledged to legalize cannabis when chancellor Scholz takes over the helm of Europe’s largest economy next month.
It’s expected that the bill to legalize marijuana will be introduced during the upcoming legislative session. There will be enhanced drug harm reduction services as well as new limits on advertising of cigarettes, alcohol and, in the future, cannabis.
The initiative will last 4 years, after which a review of the social impact of the reform will be required.
The so-called “traffic light” coalition, so named for their red, yellow and green political colours, claim that regulating sales of marijuana will spell the end for the illicit drug market.
Who is the incoming government?
The government to replace the current Christian Democratic Union is formed of three German political parties. It is led by the Social Democratic Party of Germany (SPD), with help from the Free Democratic Party (FDP) and the Green party.
Alex Scholz will take over from outgoing chancellor Angela Merkel, who is stepping down after 16 years in office.
After lengthy coalition negotiations, the three party coalition have confirmed the controlled distribution of cannabis to adults for recreational purposes in licensed shops.
Amongst the pledges of the coalition agreement are many more things than marijuana legalization however.
Germany is currently recovering from its worst ever environmental disaster when floods killed 180 people earlier this year. To help combat climate change, the new governing coalition plans to end the use of coal by 2030.
Controversially in the wake of spiralling covid infections they are also discussing mandatory covid vaccination for all residents.
What are the current cannabis laws in Germany?
Currently, personal possession of cannabis is decriminalized in Germany, and the country has a medical cannabis plan in place. The new changes will open this up and introduce a regulated market for adult-use marijuana.
Where will recreational cannabis be available?
“We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors,”
According to the 177 page coalition agreement,
We await more details in the new year.
Public Opinion
Germany has an estimated 4 million regular cannabis users in Germany according to Wieland Schinnenburg, the FDP’s parliamentary group spokesman on drug and addiction policy.
However, in a recent poll on the total legalisation of cannabis, conducted in Germany by the Forsa demographic institute, the majority of those surveyed voted “No”.
Published in September, 59% of respondents accepted the legalisation of cannabis for medicinal purposes only. Some 30% total legalisation of cannabis for recreational purposes.
7% were in favour of total prohibition,
Meanwhile Police unions in Germany have come out against the plans to legalize marijuana.
Will the legislation be passed?
This is not a done deal. The incoming government’s vision will still need to be approved by the Bundesrat. This is the second legislative chamber, which represents the nation’s 16 states at the federal level.
Counterweight to the Bundestag federal parliament, The Bundesrat will continue to be controlled by Angela Merkel’s CDU for at least the next year or two.
The CDU are fiercely against plans to legalize and may stop at nothing to block the motion
What does cannabis legalization mean for Germany?
The lawmakers emphasized that the objective of the reform is not to boost tax revenue for the country. However, FDP said in its election manifesto that taxing cannabis like cigarettes could generate €1 billion annually.
This may be a conservative estimate, with some experts claiming cannabis could bring up to 4.7 billion euros.
German cannabis firm’s shares rocket
The announcement has already impacted the German Cannabis company SynBiotic. This Munich based company’s shares have shot up 35% to 31 euros ($35) on the Frankfurt stock exchange today. They now have a market cap of over 100 million euros.
SynBiotic plans to use cannabis to develop drugs for conditions like chronic pain, stress and sleep issues.
Investment in German companies is skyrocketing with Tech investor Christian Angermayer admitting that he owns 45% of SynBiotic’s shares.
It seems like a great time to invest. In a letter to clients this week, Hauck and Aufhauser investment bank analyst Alexander Galitsa said the German cannabis market is poised for “explosive growth” in the coming years.
Galitsa quoted studies suggesting that cannabis legalization could generate between 3.4 billion euros and 4.7 billion euros of annual tax revenue, as well as creating 27,000 new jobs.
Legalization in Luxembourg
Meanwhile In neighboring Luxembourg, the country’s interior and justice ministers unveiled a legalization plan in late June.
It requires a vote in Parliament in 2022, but is sure to pass as all ruling parties back the reform.
The latest plan permits the cultivation of up to four cannabis plants per household, but sales will not be allowed.
Possession of up to 3g will be permitted in public, but public consumption will not be permitted.
Which country will legalize marijuana next?
If either Germany or Luxembourg move ahead with the reform, they would be the first country in the European Union to do so.
In Spain, the coalition government recently knocked back a three party initiative spearheaded by the liberal “Podemos” party to legalize for recreational purposes. Experts, however, claim that it is only a matter of time.
Spain is already the biggest producer of black market marijuana in Europe due to its incredible 2,905 hours of sun every year. For many, legalization seems like the only way out of its burgeoning financial crisis.
Experts say it could bring billions to this desperately struggling economy.
Greece
In Greece, traditionally a country with draconian drug laws, the green rush has already started. Earlier this year the Greek parliament passed bill legalizing the cultivation and sale of marijuana for medical purposes. Like Spain, Greece has an ideal climate for production of marijuana. With this new drug policy there are hopes of becoming the European market leader in the cannabinoid market.
Over the pond, Canada and Uruguay have already legalized recreational cannabis. Canada, who legalized in late 2018, are already reaping an annual revenue of over 2 billion euros.
The future for Germany
Obviously we can only wait and seen what this historic election brings. The power of Angela Merkel’s Christian Democratic Union, along with their sister Christian Social Union to unseat German cannabis legalization in the Bundesrat should not be underestimated.
However the three party coalition are looking strong in their resolve to legalize cannabis, and we have to hope that common sense and the vast financial rewards on offer will help them win this battle.
Hopefully that will open a path for other countries to follow, and finally lead to the legalization of cannabis for recreational and medicinal purposes across the board within the European Union.
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