Germany is taking the canned route when it comes to legalizing cannabis

Given its status as the largest economy in the European Union, there has been considerable buzz in the cannabis industry over Germany’s intention to legalize recreational cannabis. Last October, German Health Minister Karl Lauterbach presented a proposed plan to the cabinet for full legalization of cannabis, saying it was only a matter of when.

However, given its obligations under the UN Treaty and EC regulations, there were legitimate concerns at the time about Germany’s ability to implement such a plan. The situation has changed with Mr Lauterbach recently revealing that Germany is revising its legalization plans and developing a “solid proposal that prioritizes public health and the safety of minors”.

The federal government has changed stance and is now pursuing a stripped-down, two-pronged approach that offers limited commercial opportunities, at least for now. The new plan for a regulated cannabis industry in Germany presented last Wednesday consists of two main components.

Under the new plan, nonprofit organizations can grow cannabis together for recreational use and share it among members for personal consumption. This aspect of the project is expected to be implemented in 2023. In addition, region-specific commercial supply chain pilot initiatives will be established for a period of time. The purpose of these tests is to collect data to support future public policies.

After Germany initially pledged full legalization, it is the latest nation to abandon, postpone, or substantially change its proposals to legalize cannabis. These policy changes underscore the need for companies to act with caution and thought, rather than impulsively. In recent years, Mexico, Israel and New Zealand have also expressed moves to legalize and regulate recreational cannabis use, only to see those plans lose momentum due to various factors.

Why the news isn’t surprising.

Germany is a party to the 1961 Single Convention on Narcotic Drugs, an agreement to combat global drug trafficking and to restrict the possession, use and manufacture of narcotic drugs, including cannabis, for medical purposes and scientific investigations.

Many people assume that signatories to the UN treaty have no way of legalizing recreational cannabis. However, Michael Krawitz, a US Air Force veteran, posits that there is a loophole in Article 2, Paragraph 9 that might allow this. Additionally, Canada is also a party to the convention and fully legalized cannabis in 2018, four years after signing the treaty.

EU membership has more serious consequences.

Unlike Canada, which is not a member of the European Union (EU), Germany, as a member of the European Commission (EC), is bound by all three international drug control treaties. As a result, Germany must obtain EC approval for its cannabis plan, which must demonstrate that the country will not violate any major drug treaties.

Under the previous plan, Germany claimed it could meet domestic demand for recreational cannabis without importing it from other countries. Essentially, there would be no international trade in recreational cannabis involving Germany. However, as Germany is a Schengen member and borders nine other Schengen countries, the restriction on cross-border trade may have an impact on other Schengen countries.

In the previous proposal, Germany claimed that it could meet local demand for recreational cannabis without importing it from other countries. Essentially, there would be no global trade in recreational cannabis involving Germany. Since Germany is a Schengen country and borders nine other Schengen countries, such a decision to restrict cross-border trade could affect other Schengen members.

According to Luther, the Germans developed a method to achieve this while respecting the EU treaties. Perhaps they were too optimistic about what they could achieve with the EU Commission. The EU Commission gave them a pretty blatant reality check.

The new two-column model

The legalization strategy presented by Germany on Wednesday stipulates that non-profit associations that enable self-ownership and cultivation will be reviewed after four years. If necessary, the plan can be modified to address public health, youth safety and anti-black market concerns.

Individuals would be permitted to possess up to 25 grams of cannabis without penalty for personal use. Non-profit organizations would have the opportunity to cooperate in the cultivation of recreational cannabis by their members under specific and well-defined legal structures that have yet to be established.

The government has stated that hiring third-party companies outside the non-profit association for cultivation purposes would be prohibited. State authorities would approve and oversee cultivation, ensure compliance with quality, quantity and youth protection standards, and carry out on-site inspections.

According to the federal government, membership in more than one club could be banned. The plan also includes some other details:

• A blanket advertising ban on cannabis and associations will be imposed, except for factual information deemed acceptable by the government.

• Documentation and reporting is required for production and sales volumes.

• Home growing of up to three female flowering plants would be allowed.

• The membership fees should cover the expenses of the association.

• The possibility of importing seeds from third countries for the associations is being examined.

The second strategy focuses on regional trials with commercial supply chains. According to Luther, the success of the proposed regional pilot programs will be critical in determining the potential of the recreational cannabis industry. The federal government describes this pillar as the next step towards national regulation and indicates that full legalization could still be possible in the future.

Diploma

The new plan for a regulated cannabis business in Germany marks a major shift in the nation’s attitude towards marijuana. The program provides a mechanism for non-profit organizations to grow and distribute cannabis for personal use, as well as regional pilots to collect data for future public policy, albeit not as comprehensive as originally promised.

This latest development in Germany’s cannabis regulatory plan underscores the importance of adaptive and strategic thinking in the rapidly evolving cannabis industry. The government takes a responsible and measured approach to legalization, making adjustments and adhering to international treaties. As Germany continues to explore new opportunities and work towards a broader regulatory framework, it will be exciting to see how the market evolves and changes over the coming years

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