Today in Germany federal ministers from the nation’s government held a press conference in which they announced components for what will serve as the ‘first phase’ of adult-use cannabis legalization in the European Union’s most populous country.

“In a first step, cultivation in non-profit associations and private cultivation should be made possible nationwide. In a second step, the sale in specialist shops will be implemented as a scientifically designed, regionally limited and time-limited model project. In the model project, the effects of a commercial supply chain on health and youth protection as well as the black market can be scientifically examined in more detail.” Government officials stated in a press release after today’s press conference.

According to details offered up during the press conference, a video of which is embedded at the end of this article, there will be a possession limit of up to 25 grams of cannabis and a cultivation limit of a maximum of three plants. The legal age will be set at 18.

“Cannabis is a common stimulant. It is often offered and used illegally in Germany. This is often a health hazard. Adolescents in particular are impaired in their social and cognitive development by cannabis. Despite this, more and more young people are using the drug. The black market goods are often contaminated and create additional health hazards. We can no longer accept this. That’s why we dare the controlled sale of cannabis to adults within clear limits and push back the black market, flanked by preventive measures for young people. Health protection is the priority. The previous cannabis policy has failed. Now we have to break new ground.” said German Health Minister Karl Lauterbach about cannabis policy in Germany.

“The previous restrictive handling of cannabis in Germany has failed. Banning cannabis criminalizes countless people, pushing them into criminal structures and tying up immense resources from law enforcement agencies. It’s time for a new approach that allows more personal responsibility, pushes back the black market and relieves the police and public prosecutor’s offices. We trust people more – without downplaying the dangers that can emanate from cannabis consumption.” added German Federal Minister of Justice Marco Buschmann.

Another key component of the legalization plan’s first phase, which will serve as the foundation for adult-use cannabis access for many consumers in Germany, will be noncommercial associations or clubs. Membership will be capped at 500 consumers per club.

“Membership fees cover the cost price, staggered according to the quantity supplied ( possibly with a basic flat rate and an additional amount per gram supplied). The number of members per association is limited to a maximum of 500 with a minimum age of 18 years and domicile or habitual abode in Germany. The number of associations can be limited by population density.” today’s press release stated.

“The use of cannabis is a social reality. Decades of prohibition policies have turned a blind eye to this and, above all, caused problems: at the expense of our children and young people, the health of consumers and the law enforcement authorities. Now we are creating a coherent and pragmatic cannabis policy from a single source, from cultivation to consumption. Nobody should have to buy from dealers without knowing what they are getting. Through controlled cultivation and distribution within the framework of cannabis clubs, we strengthen youth and health protection. And: We cut the ground for organized crime, which does not even shy away from selling it to children. With a regional model project, we are also exploring the possibilities of a commercial supply chain.” said Federal Minister of Agriculture Cem Özdemir.

The second phase of the legalization plan announced today, which the Minister of Agriculture touched on in his comments, will involve the launch of regional adult-use commerce pilot projects, somewhat similar to what is in place in Basel, Switzerland. Although, what will likely be implemented in Germany will presumably be on a much larger scale. The following details were released today regarding pilot projects:

• The project duration is 5 years from the established supply chain.
• There is a spatial restriction to delivery points and adult residents of certain districts/cities in several federal states (opt-in approach).
• Within the framework of the law, approval of the sale of edibles is being examined in compliance with strict youth and health protection regulations.

A third phase for legalization, which appeared to only be lightly alluded to today, is the push for nationwide adult-use sales. Leading up to today’s press conference Germany’s Health Minister indicated via comments to the media that the push for nationwide sales is not over. Rather, more time will be needed to lobby the European Union which appears to be willing to allow possession, home cultivation, noncommercial clubs, and regional pilot programs yet is still not willing to approve national sales. Thankfully, German lawmakers are not giving up, albeit moving forward on other legalization components pertaining to personal freedom in the meantime.

“The cornerstones of the 2-pillar model (“ C lub A nbau & Regional -Modell/ CARe ”) have been developed by the Federal Ministry of Health as the leader, as well as the Federal Ministry of the Interior, the Federal Ministry of Justice, the Federal Ministry of Agriculture, the Federal Ministry of Economics and the Federal Foreign Office in accordance with the technical responsibilities. The EU and international law limits were taken into account. On the basis of the key issues paper, the federal government will now present a draft law at short notice.” government officials stated in today’s press release.

“The federal departments are working on all parts of the project within the scope of their respective responsibilities under the overall leadership of the BMG. Both pillars are incorporated into concrete draft laws, with the working draft for pillar 1 being presented in April 2023, followed by the draft law for pillar 2. The results of the scientific report already commissioned on the effects of the legalization of recreational cannabis on health and youth protection in other countries are taken into account for both pillars.” the press release also stated.

“At the same time, the Federal Government is continuing its efforts (particularly through the missions abroad) to promote its approaches to its European partners and is also examining the extent to which a sufficient number of EU Member States can initiate the initiative in order to comply with the relevant EU legal framework in the medium term to be made more flexible and developed further.” the press release concluded.

Germany’s Health Minister Karl Lauterbach is widely expected to formally introduce his long-awaited cannabis legalization measure this month. As German lawmaker Carmen Wegge (SPD) stated last week, “It would be nice if the draft law would be presented on 20.4.2023.” Whether April 20th proves to be the actual date or not is something that will have to be seen as the month progresses along, however, the measure’s introduction seems to be imminent at this point.

The global conversation regarding adult-use cannabis legalization in Germany has transitioned from the question of ‘if,’ past the question of ‘when,’ and now on to the question of ‘what?’ According to prior reporting, Germany is expected to pursue a two-faceted approach to legalization policy and commerce. The two-faceted approach is reportedly a result of ongoing negotiations between the European Union and Germany’s Health Minister.

The first phase of legalization that is reportedly going to be pursued involves legalizing home cultivation, ‘noncommercial’ cannabis clubs, and the suspension of cannabis prohibition enforcement as it relates to consumers. Several lawmakers in Germany have advocated for not holding up reform as it pertains to personal liberties while trying to work out the details of what will be involved with regulated national sales, with the latter being a much heavier lift compared to the former.

“The first part of the reform measure could come into force before the summer break of the Bundestag, as Wegge and Heidenblut are speculating. This would be an urgently needed relief for millions of consumers. What this 2-phase approach means for the commercial route and the numerous companies preparing for a free market model, remains to be seen,” Kai Friedrich Niermann of law firm KFN+ said, per our prior reporting.

Adult households would be able to cultivate between 3-5 plants in Germany according to what is reportedly being considered, and adults would be able to possess up to 50 grams. Cannabis prohibition enforcement involving individual cultivation, possession, and/or use (not including DUI laws) would be suspended under the reported plan. According to a 2021 report from Heinrich Heine University Dusseldorf, Germany would save 1.05 billion euros annually by no longer enforcing cannabis prohibition, in addition to judiciary savings of 313 million euros per year.

“For reasons of European law, comprehensive legalization is obviously not feasible in the short term. We are therefore supporting Federal Health Minister Karl Lauterbach and the Federal Government with practicable steps toward legalization. From our point of view, these can be model projects, decriminalization and self-cultivation.” SPD leadership previously stated according to initial reporting by Legal Tribune Online (translated from German to English).

The European Union has not granted its permission for legal national sales to Germany, or any other member nation so far. The only country to pass a national legalization measure in Europe as of this article’s posting is Malta, and Malta’s legalization model does not involve regulated national sales. Rather, Malta’s legalization model is built on home cultivation and noncommercial cannabis clubs, which is also likely to be the case in Germany.

However, whereas Malta does not seem to have plans for a localized cannabis commerce pilot model, Germany does. How many jurisdictions will be involved, how many consumers will be able to participate, and what products they will be able to purchase are all questions that are yet to be answered, although, some form of pilot programs do appear to be on the way in Germany. If enough jurisdictions are allowed to proceed, a potentially significant number of consumers could be able to make regular, legal purchases. That in itself presents tremendous entrepreneurial and investor opportunities, particularly in the personal consumption accessories and home cultivation sectors of the emerging cannabis industry.

People often try to compare Germany to Canada and Uruguay, and to a lesser extent, the United States, however, comparing legalization models and efforts in those countries to Germany is like comparing apples and oranges due to various political factors, not the least of which is that Germany is part of the European Union and Canada, Uruguay, and the United States are not. The position in which Germany operates in the global political landscape is not the same as other nations.

When all is said and done, Germany will get its legalization cake and eat it too. In the short term, consumers will get the justice and freedom that never should have been taken away from them in the first place. Adult consumers will be able to cultivate cannabis, gift it to other adults, and eventually frequent noncommercial cannabis clubs and/or outlets that are part of a local pilot program, all without worrying about losing their freedom or having their life impacted by the criminal justice system in some way. The significance of that cannot be overstated, especially considering that the cost savings by no longer enforcing failed prohibition will be considerable, and that will benefit all citizens of Germany.

Meanwhile, the battle to legalize national sales and get the European Union on the right side of history will continue, which serves as the second facet of the reported German legalization push. Whether people realize it or not, the first facet of the legalization push is going to bolster the chances of the second phase succeeding. When Germany implements the first phase of legalization, which is a much easier lift compared to regulated national sales and will presumably take effect quickly, it will encourage other countries to do the same. Leadership in the Czech Republic has already indicated that it will pursue legalization alongside Germany, and it’s virtually guaranteed that success in both countries will encourage other European nations to pursue similar reform.

Also, noncommercial clubs and localized pilot programs will be afforded the opportunity to create data and other useful information for social and hard science research. Assuming that those forms of legalized commerce succeed, it will yield more successful examples for lawmakers like Karl Lauterbach to point to when making their arguments to the European Union. Germany is clearly building and leading a coalition of European nations that want to pursue a regulated cannabis system versus sticking with the unregulated (and failed) prohibition status quo, and the fact that Germany appears to not be letting the second facet of legalization hold up the first one is the right move in my opinion. No one should be subjected to the criminal justice system due to being an individual cannabis consumer, and that includes no one being subjected to a fine which can also have a negative impact on an individual long after the fine is paid. Germany is set to free the plant, and in the process free the people, and that is an amazing thing by every measure.

During a live stream episode of ‘4:20-Cannatalk!’ featuring German governing coalition members and drug policy spokespersons of the Social Democratic Party Dirk Heidenblut (SPD) and Carmen Wegge (SPD) on Instagram (April 3, 2023, at 8 p.m. CET), the lawmakers announced that a long-awaited adult-use legalization measure would be formally introduced ‘in two weeks.’

“It would be nice if the draft law would be presented on 20.4.2023.” said Carmen Wegge during the live stream (translated from German to English).

The measure will reportedly involve a two-faceted approach to adult-use legalization in Germany, with the first phase involving home cultivation, ‘noncommercial’ cannabis clubs, and the suspension of cannabis prohibition enforcement as it pertains to personal use, possession, and cultivation.

“The first part of the reform measure could come into force before the summer break of the Bundestag, as Wegge and Heidenblut are speculating. This would be an urgently needed relief for millions of consumers. What this 2-phase approach means for the commercial route and the numerous companies preparing for a free market model, remains to be seen,” said Kai Friedrich Niermann of law firm KFN+.

Nationwide adult-use sales, which is what many German lawmakers were pushing for, will have to wait until the second phase of the legalization effort can be pursued.

“For reasons of European law, comprehensive legalization is obviously not feasible in the short term. We are therefore supporting Federal Health Minister Karl Lauterbach and the Federal Government with practicable ones Steps towards legalization. From our point of view, these can be model projects, decriminalization and self-cultivation.” SPD leadership previously stated according to initial reporting by Legal Tribune Online.

The announcement of the pending formal introduction of the legalization measure comes after several months of Germany’s Health Minister Karl Lauterbach lobbying the European Union for permission to proceed.

The premise of Minister Lauterbach’s argument to the European Union is that Germany’s public health outcomes would be better if people were consuming regulated products versus unregulated products.

Many cannabis advocates inside and outside of Germany were hopeful that the European Union would sign off on the launch of a regulated national industry in Germany, however, it appears that will have to wait.

Despite having to wait longer for national sales, the significance of the first facet of Germany’s reported legalization measure cannot be overstated. Cannabis prohibition is a failed public policy in Germany, and its time that the nation took a more sensible approach.

According to a 2021 report from Heinrich Heine University Dusseldorf, “legalization leads to significant savings in criminal prosecution.” The report’s authors stated that Germany would save 1.05 billion euros annually by no longer enforcing cannabis prohibition, in addition to judiciary savings of 313 million euros per year.

“Banning cannabis is harmful and expensive, billions are wasted on pointless police operations. The money would be used much more effectively for education, prevention and help. It’s time for legalization!” said DHV Managing Director Georg Wurth at the time of the report’s publishing.

Cannabis commerce involving adult-use sales will not be entirely prohibited under the reported first phase of German legalization. Local pilot programs are expected to launch, like what is underway in Switzerland, albeit presumably on a much larger scale.

“This is the biggest cannabis news of the decade. Within 3 years, Germany will have the biggest federally regulated cannabis market in the world,” said Alex Rogers, founder, and CEO of the International Cannabis Business Conference.

When national sales eventually launch, Heinrich Heine University Dusseldorf estimates that 27,000 jobs will be created and that the total revenue generation to Germany’s public coffers will be roughly 4.7 billion euros per year.

The first facet of the reported pending legalization measure will involve a possession limit that may be as much as 50 grams per adult. The plant limit for home cultivation will likely end up being between 3-5 plants per adult household.

Gifting cannabis between adults will likely also be permitted according to the reported measure, with the legal age being set at 18 years old.

The adult-use legalization saga in Germany experienced new twists and turns this week, with reports surfacing that provide new details about Health Minister Karl Lauterbach’s pending legalization plan. In October 2022, German Health Minister Karl Lauterbach presented a long-awaited legalization plan to the federal cabinet. After the presentation, Minister Lauterbach started lobbying the European Union for its permission to proceed with a national legalization plan.

Since the 2021 federal election, the eyes of the international cannabis community have remained largely focused on Germany to monitor any developments coming out of the country, which is home to Europe’s largest economy. Legalization has yet to become a reality in Germany, however, the legalization process has experienced no shortage of metaphorical fireworks, including the most recent developments that made headlines at the end of this week.

Scaled Back Legalization?

Towards the end of December 2022, certain lawmakers in Germany were seemingly already growing tired of the legalization process’ pace, as demonstrated by the blocking of funding to Germany’s Health Ministry due to perceived delays in a measure being formally introduced. Even prior to Minister Lauterbach’s presentation in October 2022 to the federal cabinet, a version of a legalization plan was leaked to the media. The legalization plan was perceived as being too restrictive, generated considerable public outcry at the time, and ultimately resulted in a less-restrictive plan being presented to the federal cabinet mere days after the leak initially occurred.

Much like a political pinball, Minister Lauterbach has bounced between the European Union and the Bundestag since October, with his legalization plan seeming to evolve on a somewhat rolling basis. In January 2023, Minister Lauterbach indicated publicly that he was ‘certain’ that the European Union would grant its approval and that a formal introduction of a legalization measure would occur ‘in the first quarter of this year.’ Minister Lauterbach added at the time according to the report, that he had ‘no reason to doubt this schedule.’ As anyone with access to a calendar will quickly notice, the first quarter of 2023 has passed, and yet, there is still no legalization measure introduced.

Instead, what surfaced at the end of the first quarter of 2023 were comments made by Minister Lauterbach which suggest that his legalization plan has regressed after talking to the European Union. According to domestic reports, the current plan does not involve national sales, but rather, pilot programs akin to what is going on in Switzerland. The pilot phase for legalization is reportedly planned for a four-year period. The two bright spots of Minster Lauterbach’s recent comments involve home cultivation and private cannabis clubs, which apparently don’t require European Union approval. Although, neither of those components is exactly shocking given that Malta has already passed a measure that included both components.

Domestic Political Checks And Balances

Until an adult-use legalization measure is formally introduced in Germany, the world will ultimately not know what legalization components will be involved. The desires of the European Union will have to be weighed against the demands of the current governing coalition in Germany, which as previously mentioned, has members that will presumably not accept a limited legalization model. Furthermore, some of them will not tolerate additional delays in a measure being formally introduced.

Obviously, Minister Lauterbach cannot please all stakeholders when it comes to a legalization measure, and his ultimate bosses are located in his home country. I am still of the opinion that there will be one or more leaks to the media in the coming weeks to further build domestic political pressure around Minister Lauterbach, urging him to disregard some concessions being reportedly demanded by the European Union. It certainly feels like a showdown is brewing in my opinion.

Domestic coverage indicates that a commissioned expert opinion report ordered by the German Federal Ministry of Health is not expected to be ready until the end of April. It’s quite possible that a formal introduction of a legalization measure may not occur until well after that particular report is finalized. After all, the expert opinion report is just one of the facets involved with the push to legalize cannabis in Germany. All the international cannabis community can do in the meantime is wait, and for those that live within Germany’s borders to keep the pressure on Minister Lauterbach and continue to urge him to step up and introduce a legalization measure that is meaningful and truly reflective of what German voters want.