Malta is the first in the EU to legalize recreational cannabis use

As a sign that things are absolutely at a turning point in Europe, the Mediterranean island of Malta became the first country in both Europe and the European Union (EU) to legalize the cultivation, possession and use of cannabis as a recreational activity. Luxembourg announced similar plans (and model) about a month ago, but these will (at least initially) be limited to the public sale of seeds.

Although the bill has yet to be signed by the President, this is a minor detail. In the words of the legislator who introduced the law to the Maltese Parliament, Owen Bonnici, this is indeed a “groundbreaking” moment. It is also the first time that a European federal legislature has enacted a reform for recreational cannabis.

Despite greater federal involvement in regulating industry in Holland, even the Dutch have not yet gone that far. Switzerland is not in the EU. Portugal and Germany are ready to move forward, but have not yet done so. Luxembourg has stepped out of the shadows, but only to create a public seed market (for the time being).

Given the timing of such announcements, it is very likely that the Luxembourg and Maltese markets will develop along very similar timelines, if not industry constructs.

The only difference, of course, is that there is no longer a gray area in Malta. Cannabis-specific sales outlets may be operated – albeit at a reasonable distance from schools and youth centers.

In addition, consumers can carry seven grams in public, grow up to four plants, and store up to 50 grams of cannabis at home.

The birth of the European recreational cannabis market

This development was only a matter of time. Recreational cannabis reform has been high on the agenda across Europe in recent months – albeit not quite as quickly as in Malta. Above all, the new coalition government in Germany, the largest economy in Europe, has announced that it will legalize recreational use as early as next year.

Luxembourg and Switzerland are making progress with limited processes. Portugal is also very likely to follow suit. Italy is also floating on the sidelines on this issue, with over half a million signatures gathered this summer to move the issue forward at the legislative level.

If there was a parallel, now is a time very similar to 2012 in the United States. The reform is now formally accepted at the legislative level (although here it takes place at the sovereign rather than the state level). Up to five or six recovery reform states could come into effect in two years.

What does this mean for the industry?

For American investors in particular, now is a very good time to show their presence here. While flower and product cannot cross the Atlantic (at least not easily and directly), investments can. The British are also circling. While reforms have not been (and likely will not) be as quick as on the continent, London’s stock markets are already a focal point for those looking to invest.

What started as a trickle this year is likely to become a flood in the next six to twelve months.

German companies, especially those that have managed to get into the medical field with an operational sales license, currently have a clear regional advantage, if only because of the advantage of an early organizational lead.

Change at the EU level

While such developments are clearly exciting, don’t expect all of this to go smoothly. There are still some major roadblocks left before the industry can operate more normally. As individual countries begin to move towards leisure, the issue still needs to be addressed at the regional level. So far, this has only happened to CBD (which has not yet been adopted by many countries).

This will be an issue (at least) in the cross-border cannabis trade – and for this reason EU GMP should play a much larger role, at least initially. The German pharmaceutical specialists will also have a clear advantage in the coming market – and not just in one country, but in the entire region.

Regardless, a real cannabis change is finally coming. It happened first in Malta.

And while it may still not make it into the top 10 most significant events in Maltese history, this development is certainly a sign of great change – and beyond, not limited to this one small European island.