German cannabis legalization holds — for now 🇩🇪

DEUTSCHLAND
Germany’s cannabis legalization holds — for now

Driving the news: German Chancellor Friedrich Merz of the conservative Christian Democratic Union won a shaky victory in February’s election.

Merz opposed Germany’s cannabis legalization policy, which went into effect last year, on the campaign trail. Some in the industry feared he would work to roll it back. 

It now appears his party has reached a deal with the Social Democratic Party of Germany (SDP)  to govern the country.

What happened: Cannabis legalization remains unchanged in Germany, at least for now. 

But the country pursued a far different legalization model than Canada and US states like California in New York. Possession of up to 25 grams of cannabis for adults over the age of 18 is legal in public, and up to 50 grams in private. 

Adults can grow up to three plants at home, and can purchase cannabis via nonprofit ‘member’s clubs,’ rather than through for-profit dispensaries.

Still, despite the limited model, many Canadian cannabis firms have signed lucrative export deals to supply the German market. Those deals, despite some initial fears, will remain in place.

But it also creates a lot of uncertainty for the next step of German legalization, and whether the government, under the new coalition, will seek to expand into more for-profit recreational stores or allow adults to grow at home. 

Lawmakers will re-evaluate the cannabis legalization bill later this year. 

What they’re saying: “Germany’s cannabis industry is breathing a sigh of relief,” Niklas Kouparanis, the CEO of European cannabis firm Bloomwell Group said. 

Read more: Our March 2 newsletter from Deepak Anand. 

-JB

“They’re not saying ‘no’ to the idea [of legalization] in and of itself,” Pennsylvania Rep. Emily Kinkead, a Democrat, said. “I think it’s a great indicator that there’s so many people talking about it, including the negative comments. They’re saying the proposal isn’t what they want it to be, but they’re not saying ‘no’ in any of it.”

Kinkead is referring to the ongoing battle in Pennsylvania to legalize cannabis. Democratic Gov. Josh Shapiro is a strong supporter, but many Republicans in the state legislature are pushing back.

Read more.

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