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On Friday 2/23/24, the German parliament approved a bill for the decriminalization of marijuana, paving the way for eventual legal sales to adults. This legislation, part of an agreement among the three-party coalition government, seeks to legalize cannabis possession and home cultivation for adults, with non-profit cannabis clubs authorized to supply consumers.

German Health Minister Karl Lauterbach emphasized the shift away from punishment and taboo, stating, “We have to face up to the problems.” The vote has garnered international attention, with Omar Khan, a spokesperson for Canadian cannabis company High Tide, calling it a historic moment. Germany is poised to become the first EU country and the second G7 country, after Canada, to legalize adult use.

Key provisions include allowing adults over 18 to possess 25 grams of cannabis and cultivate up to three plants at home. Cannabis clubs will be permitted to supply up to 500 members, with a monthly limit of 50 grams per member. Notably, THC potency will be restricted for 18- to 21-year-olds to address concerns about the impact of marijuana use on the developing brain.

The legislation will remove cannabis from the list of narcotic substances in Germany, benefiting existing medical marijuana operators. Niklas Kouparanis, CEO of German medical cannabis company Bloomwell Group, predicts a significant expansion in the medical cannabis market due to this reclassification.

However, the law faced recent opposition, especially within Chancellor Olaf Scholz’s SPD party, where concerns were raised about the lack of controlled distribution in licensed stores. Critics argued that merely legalizing possession without regulated distribution would fail to combat organized crime or alleviate the police’s burden.

The decriminalization legislation now proceeds to the Bundesrat, comprising regional state representatives. If no objections arise, the first part of the bill, legalizing cannabis possession and home cultivation, could take effect on April 1. The second part, governing cultivation in cannabis clubs, is scheduled for July 1. However, potential disagreements may prompt the Bundesrat to convene a “mediation committee” within three weeks, potentially delaying implementation into the summer.

Despite these challenges, the decriminalization legislation represents the “first pillar” in a two-step plan for marijuana legalization in Germany. The anticipated “second pillar” involves setting up municipal five-year pilot programs for state-controlled cannabis sales in licensed shops, exciting cannabis companies eyeing the German and European markets.