Germany today unveiled a parliamentary bill that would legally allow people to use and grow cannabis for recreational use, which industry members said was "ushering in a new era" for the industry.
The draft bill, a watered-down version of plans blocked by the European Commission last year, was today approved by the German cabinet after being proposed by the health ministry.
Germany has been one of the leading countries in Europe for medical cannabis since 2017, though recreational use remains illegal.
What's in the new cannabis bill?
Aimed to be approved by parliament by the end of the year, the bill proposes legalising possession of up to 25 grammes (nine-tenths of an ounce) of cannabis for recreational purposes, allowing individuals to grow up to three plants on their own and allowing the purchase of up to 25 grammes per day, or a maximum 50 grammes per month. Those aged between 18 and 21 will be limited to 30 grams per month.
Non-profit “cannabis clubs” of up to 500 members would also be set up under the bill, which would be allowed to grow cannabis for members’ personal consumption.
After initial plans laid out last year for a fully-fledged domestic adult-use cannabis market were stymied by the European Commission, the new bill is seen as a more achievable set of changes that will not be rejected by the EU lawmakers.
Pros, Cons and savings
It will be put before lawmakers in the Bundestag for consideration, though there remains opposition from conservative politicians and their supporters to the legalisation of the drug for recreational purposes.
Health minister Karl Lauterbach said the bill proposes a concept of “controlled legalisation” and said the aim is “to limit consumption and make it safer”.
He called the draft bill a “turning point” and predicted sizeable savings for pharmaceutical companies involved in the industry, as well as resulting in competitive prices that would “push back the black market well”.
The legislation estimates that removing the bureaucratic hurdles associated with the current classification of cannabis as a narcotic, even when it’s prescribed for medicinal purposes, means pharmaceutical wholesalers trading medicinal cannabis can save an average of €2.3 million per year.
In the case of medical practices, it is calculated that compliance costs will be reduced by around €719,000 a year.
The new bill would change make Germany one of the first major countries in Europe to move toward legalisation of cannabis, following some smaller countries such as Malta and Luxembourg which have already legalised or decriminalised cannabis for personal use.
The Netherlands is well-known for its tolerant attitude toward cannabis, but it does not have a fully legal staus.
A new era for cannabis industry
Niklas Kouparanis, chief executive of Bloomwell Group, which operates wholesale and direct-to-consumer cannabis sales for medical use and “lifestyle consumption”, agreed it was a turning point for cannabis regulations in the EU.
“Now one thing is clear: the largest European economy in the heart of the European Union is ushering in a new era for cannabis.
"The legislation presented today is a turning point for cannabis regulations in the EU, setting a positive example of what’s possible for the rest of Europe and the world."
With Chancellor Olaf Scholz’s three-party ‘traffic light’ coalition government in charge, passing the law should be "a mere formality", Kouparanis said, though predicting some heated debates ahead.
He added that complete legalisation of the value chain for adult-use cannabis, from cultivation to processing and production to sales for adult consumers, will require cooperation with the EU’s other progressive cannabis countries.
Removing the narcotic classification of cannabis has a great deal of significance, Kouparanis added.
“This will be a milestone for doctors, patients and all other industry participants. The course has been set for better medical care and growth within the medical cannabis sector.
“This increase in efficiency will also benefit the patients, who will have access to medicinal cannabis at more affordable price points.”
Germany's cannabis history
In 2017, Germany passed a law that legalised the use of cannabis for medicinal purposes, allowing people with serious illnesses, such as multiple sclerosis and chronic pain to get a marijuana prescription from their doctor and buy cannabis from their local pharmacy.
Having previously only been able to access medical cannabis via special authorisation, patients in Germany could from this point get a refund for the upfront cost from their health insurance.
The 2017 law also allowed the cultivation of cannabis for medical use, under federal supervision.
Three official cultivators were chosen in 2019 to ensure a national supply: Aurora and Demecan from Canada and Aphria RX from Germany.
The first harvest of German-grown cannabis was delivered to pharmacies in 2021.
Could it influence the UK market?
Germany has since been seen as providing an example of how markets could expand in other countries, in the UK for example, where patient numbers currently growing - but not as quickly as many think they should amid a more conservative policy framework.
Under the current legislation, Germany's 235,000 medical cannabis patients are part of a market estimated to expected to reach €390 million, according to Prohibition Partners, with UK patient numbers seen growing to over 47,000 by the end of this year with €44 million of sales.
Prohibition had forecast that German cannabis sales would rise to €690 million by 2025, but this is likely to change if the bill is passed.
The success of the bill in reducing black market sales and scientific studies evaluating the effects of cannabis use, including the massive Project Twenty21, could influence future policy in the UK and elsewhere.
UK companies have been adapting to the changing domestic and European cannabis market but the shift in sentiment from Germany could provide a boost.
“The newly published German proposed legislation shows that a sensible but safe approach to drug policy and harm reduction can be taken," said Professor Mike Barnes, a neurologist who educates and trains doctors about prescribing medical cannabis.
“I hope the UK government begins to take this issue seriously and move forward with a parallel policy as soon as possible."