Germany is set to legalize marijuana for adult use by enacting drug reform when the new government coalition officially enters office. Legalization efforts have been promoted in Germany for several years, but they are finally a reality in the aftermath of the 2021 German federal election. What effect could the legalization of recreational cannabis have on the global cannabis industry? And which international cannabis operators are best positioned to enter the German cannabis market?
To learn more about the plans for Germany legalizing marijuana, keep reading this blog.
Germany’s New Government Plans to Legalize Cannabis for Adult Use
Germany has a new governing coalition: the Social Democratic Party of Germany (SDP), the Free Democratic Party (FDP), and the Greens. Once that coalition takes power, one of the first dominoes to fall will be the end of the country’s prohibition against recreational cannabis with the creation of a regulated cannabis market. It became clear in early November that the new regime would be legalizing marijuana for adult use. Now that move is set to become official with the incoming governing coalition formally agreeing to implement a cannabis legalization measure once they take power. An announcement was made in late November to trumpet the release of a 118-page plan addressing the logistics of legalizing cannabis and controlling its distribution through licensed dispensaries.
In the agreement, the incoming parties emphasized that steps were being taken to ensure that minors are protected against any dangers that might be posed by marijuana use. With that in mind, the legalization plans call for quality control measures for marijuana cultivation, as well as regulations that would prevent contaminated marijuana from being sold on the legal market. Moreover, there will be substantial restrictions on advertising for cannabis products so that cannabis companies cannot target minors. After a period of four (4) years, Germany’s joint government will review the program to make sure that legalization has not created adverse social impacts.
Other related policies that are expected to be put in place by the new government in Germany include the establishment of public services that allow individuals to have their illegal drugs tested for contamination. Anyone who brings their narcotics to one of these drug-checking locations will be able to do so without having to worry about being placed under arrest and charged with a crime.
The Future of the German Cannabis Market
What does the future hold for the German cannabis market? At present, medical marijuana is already legal in Germany. Additionally, the country has already decriminalized the possession of small amounts of marijuana for personal use.
Although there has been some opposition to legalization of recreational marijuana from German police unions and other groups, the reality is that making cannabis legal for adult use is overwhelmingly popular in Germany. (Cannabis legalization is also extremely popular in the United States, Mexico, and other countries.) Once the recreational marijuana market opens up in Germany, it could create a lot of opportunities for international cannabis operators. For example, industry-leading cannabis company Curaleaf is already looking to expand its reach into Europe with its global arm, Curaleaf International.
Contact Scythian Cannabis Real Estate
Scythian Real Estate is a privately held cannabis fund that works with sophisticated cannabis operators who need help securing financing and/or expanding into new cannabis markets. Email us today for additional information.
PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.