Tag: Luxembourg

The European country has had rec reform on its legislative agenda for the last three years. However, it increasingly looks like such plans have no intention of creating a commercial industry.

The coalition government of Luxembourg has been in the global spotlight since 2018 since it formally announced it planned to legalize recreational cannabis by 2023. Since then, however, exact steps and formal timelines have been assiduously avoided. Indeed, there have been many rumours in the last several months that the country planned to enter this space in a way that might be unexpected.

That lack of clarity came to an end last week when the government put its proposal online.

Here are some of the surprising details.

The Government Will Legalize Home Grow

Luxembourgian citizens will have the right to grow four plants at home – either indoors or outdoors – if the cannabis grow is secured and not visible to anyone passing by a public road. This is a per household, not resident law, meaning that no matter how many people live at a single address, the four plant rule will apply. This means that cannabis could be grown indoors, outdoors in a private garden, or on a balcony, out of sight of public view. 

The cannabis can be grown from seeds that will be available in stores in Luxembourg as well as imported online from overseas. This will be a huge boost for the seed stores in Holland and Spain (for starters). It may also lead to a booming “pre-recreational” cannabis market in seeds but nothing else.

Persons caught in public with more than 3 grams will still face an administrative fine (€145). 

The donation or sale of cannabis will remain illegal.

For a government that has also supposedly studied “other models” – starting with Canada, this is remarkably slow off the bat approach. Regardless, in a space currently defined by Holland and nobody else, it was unlikely that the Luxembourgian experiment was going to blow any doors off in terms of breaking the mold.

That honour will almost certainly fall to Germany – which of course in the last week has also seen its new political leaders declare that cannabis reform is a common plank if not top priority.

In the meantime, however, there will begin to be a limited cannabis market in Luxembourg, if only confined to seeds and home grow setups. And Switzerland, as well as Germany, will now almost undoubtedly set the pace for the rest of Europe.

Be sure to keep abreast of the now rapidly moving cannabis reform discussion in Europe by staying up to date with the International Cannabis Business Conference blog! Don’t forget, the International Cannabis Business Conference is returning to Europe in 2022.

What does this mean for the entire discussion across the EU?

Adults in Luxembourg will be permitted to grow up to four cannabis plants in their homes and gardens as part of the emerging details of the country’s legalization program.

The announcement in mid-October certainly blew a breath of fresh if not cannabis-scented air through a debate in Europe which has also seen the European Commission begin to ponder, publicly, if they should rescind their last decision about CBD (namely that it is not a narcotic).

In Luxembourg, however, seed sales will also be permitted with no limit on the level of THC in the same. Sales will also be permitted both in shops and online (which is also no doubt, going to be a boost for the online seed businesses in Europe, starting with Holland.)

Plans also include a system for domestic production of seeds for commercial purposes – but both a national supply chain as well as state-regulated distribution have been repeatedly slowed down by Covid.

Until such plans have been drafted, it remains illegal to consume and trade in cannabis products or plants themselves. The consumption of the same in public and transport of more than three grams still remains a criminal offense. Fines for possession of under three grams will be reduced to about €25.

Legislation to formalize the market is now expected to be introduced in the fall of 2023, with work on the draft law beginning this autumn.

Among the expected issues to be discussed (based on measures already introduced) are a maximum sale amount per month (30 grams), age limits (over 18) and deliveries and online sales are prohibited. Beyond this, purchases will be limited to residents of Luxembourg who have resided in the country for more than 6 months.

There will also be a strictly controlled point of sale infrastructure. Right now, it is expected that there will be 14 points of sale across the country. Products to be sold also must be produced in Luxembourg (in a page out of the Swiss trial).

While the country is a very small one, even for Europe, the impact of the forward motion of this domestic market will be felt throughout the EU. Switzerland is not in the EU (even though it is in Europe). While it is part of a trading alliance with two EU countries (Austria and Germany), regulations here are not tied to approvals by regional authorities. Luxembourg, however, is another kettle of fish.

As a result, progress in Luxembourg is also likely to drive the recreational discussion in other parts of the continent – starting of course in Portugal, but hardly staying there – including of course, pending discussions now underway in Germany as the coalition parties who won the election continue to move towards governing.

Be sure to stay tuned to the International Cannabis Business Conference for more cannabis news from Europe (and beyond).

The Grand Duchy of Luxembourg has a date with destiny – namely recreational reform by the fall of this year (legislatively at least). But the devil is, as always, in the details.

Here is the intriguing development. Theoretically, or at least legislatively, Luxembourg is supposed to approve a recreational cannabis market this fall. 

Where has this been heard before? Ah, yes, Canada, circa 2018. 

Indeed, according to insiders, the country has been looking abroad for examples of how to proceed. An article in a French pro cannabis zine reports this week that the Parliament continues to debate the topic. The pressure is certainly on. This one small country of 600,000 in the heart of the EU is due to have an outsize impact on the conversation – and everyone knows it.

While Covid has clearly delayed the debate (everywhere), in Luxembourg the stakes are high – starting for the political party (the Greens) who promised to make this all happen back in 2018 when they got elected. How time flies.

Indeed, Luxembourg is likely less to be like “Canada” and more like Colorado in the ongoing European model. Holland is currently playing the part of California, sans raids by the federales. 

No matter the analogy, and from where it is drawn, politicians of the “left” persuasion are now in the political hot seat to deliver. Reform in the Duchy must be passed.

A Tipping Point European State?

Luxembourg, no matter the particulars of its reform, and how to control and regulate the sales of cannabis, is clearly a tipping point moment in the entire debate for the European Union if not Europe – particularly with Switzerland lining up to follow suit just next year.

Once there is a test model, there will be something for (at least) the Germans to debate. However, reform in Luxembourg is not even what it was pre-pandemic. The hit to every European economy from the shutdowns is massive. Further, it is inevitable that there will be both societal as well as political shifting – including on the entire topic – almost exactly like there was in the Roaring Twenties of the last century.

Just because Luxembourg is doing it, however, is not going to be an excuse that is likely to fly smoothly at the Bundestag (for one). That said, Germany, Italy, and other countries where medical reform has now come will be in the front lines of the debate in a way that has not happened here, yet.

Be sure to book your tickets to the International Cannabis Business Conference when it returns to Berlin this August!

Written By: Marguerite Arnold

Luxembourg Throws Down Gauntlet On European Cannabis Legalization

Luxembourg is going to disrupt the European cannabis industry. This summer, Luxembourg ‘s Health Minister confirmed that the country is now moving even faster toward full cannabis legalization and plans to release its first draft of plans for legalization by the end of 2019. If this project stays on schedule, Luxembourg will have Europe’s first fully legal recreational cannabis market by the beginning of 2022. So now the race begins. If Luxembourg is going to be the “Colorado of Europe”, who will be the “Washington State”, or even the “California” of European cannabis?

A Domestic Market For Locals Or A Tourist Mecca?

Luxembourg is clearly intent on setting the recreational cannabis agenda across the continent. And while excitement is growing, investments have been slow, because there are challenges.

Yes, Luxembourg has decided to drive the cannabis agenda, which means raising this issue to the EU level and creating a deadline. However, there are a couple of things industry investors should keep in mind:

1. Luxembourg itself is a tiny country with just over half a million residents.
2. The cannabis legalization plan so far is being pitched as an anti-crime, public health measure. Attracting throngs of cannabis infused tourists (and their piles of cannabis infused money) isn’t on the agenda.
3. While international cannabucks are welcome there is an increasing sense that international investors aren’t the only game in town. Local production and local ownership are on the drawing board.

What Will The Market Look Like?

There has been alot of back and forth consulting between Luxembourg and Canada. Regulatory similarities ( like a proposal to limit personal possession to 30 grams, same as in Canada) are beginning to emerge. Expect a push to allow medical cannabis patients to grow their own medicine, while recreational users will have to buy weed at the store. For some reason, the cannabis hates the idea of people being allowed to grow their own weed, even though people can make their own beer yet commercial beer makers are doing fine. The fight, er, discussion about just who will have the right to produce cannabis is just beginning.

The game is in the early stages, and the players are just getting warmed up. But Luxembourg has announced the beginnings of a plan and set a deadline. As the dominoes start to fall, we wonder: Which country will be next?

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