Following the landmark legislative change in Germany earlier this month, experts are expecting to see a ripple effect across the continent, with some predicting that Europe could overtake the US as the global leader of cannabis reform.
In Berlin this week, for a historical International Cannabis Business Conference, there was just one topic on everyone’s lips — Germany’s newly-passed CanG law.
On 1 April, lawmakers voted to pass the bill, which will see the country take a phased approach to the legalisation of adult-use cannabis.
With Pillar one now underway, individuals are permitted to carry up to 25g of cannabis for personal use and grow up to four plants at home.
Applications for Growing Associations (not to be confused with ‘social clubs’ given the fact that you are not permitted to consume on site or within 100 metres) are due to open on 1 July.
Based on the current restrictions which limit clubs to one for every 6,000 residents —with a maximum of 500 members each—experts are expecting to see up to 3,000 official associations opened in the next few years.
However, some industry insiders suggest there could be many more—potentially up to 10,000— ‘unofficial’ or ‘activist-focused’ clubs setting up to override some of the government’s restrictions and administrative procedures.
Pillar three— pushing for wider EU reform
Due to be implemented at a later date, pillar 2 will see the roll-out of a limited regulated market for adult-use sales, which will be closely monitored by researchers under a pilot study model.
This scientific data will be crucial, according to Peter Homberg, partner at Dentons and head of the European Cannabis Group, when it comes to the so-called ‘pillar three’, which will see Germany seek other countries in the EU to try to convince lawmakers to change the current prohibition policy.
German officials were forced to scale back initial plans for full legalisation following meetings with the European Commission.
The UN single convention on Narcotic Drugs and the Schengen Agreement, which translates this into EU law, prohibits the commercial sale of cannabis for adult-use. Sources have previously told Cannabis Health that it would require at least seven countries to convince the EU to abolish this law or apply a workaround.
EU could overtake US as leader in global cannabis reform
Given that Germany is the most influential country to introduce this level of federal cannabis legalisation, with four million consumers, and a total market potential of 7.8 billion Euros, Beau Whitney, head economist at Whitney Economics, is anticipating a response from the UN and/or EU.
And with a number of other neighbouring countries examining legislative change of some kind, Europe could be set to be the ‘sleeping giant’ of global cannabis reform.
“[We can] expect an accelerated expansion in the EU of legalised cannabis,” said Whitney, speaking at ICBC on Tuesday 16 April.
“Most EU countries are examining reforms but are confused on direction and scope. The ‘legal in one country is legal in all’ argument may open up markets in other countries… others will examine pilot programmes and social clubs.”
He added: “If countries reform quickly, then the EU could supplant the US as the major leader in global cannabis. While most feel the US sets the pace, the EU could very well be the catalyst in global cannabis reform.”
Movement from regulators?
Speaking on Wednesday 17 April, Lisa Haag, founder of Germany-based consultancy, MJ Universe, said the only way to ensure widespread reform and overcome existing barriers was for cannabis to be removed from the UN Single Convention altogether.
“The signal convention is, in my opinion, the biggest trade barrier,” she told Cannabis Health.
“We need to have cannabis either reclassified, or even entirely removed, from the single convention. It seems very unlikely that this will happen, but there are other possibilities such as modification, and so we should lobby for change as an industry.”
And it might not be as far off as it seems.
“Regulators are now interested in these discussions, there is movement,” Haag continued.
“There is more and more acceptance within governments for hemp and medicinal cannabis cultivation, and also on an individual, country and state level for legalisation. Governments understand that the status quo is outdated and needs to change because it’s not working anymore.”
She added: “You can see more openness from regulators now, because they understand that it is a very good commodity.”
For more insights on the evolution of European cannabis reform, Cannabis Europa, takes place in London from 25-26 June, 2024, with discussions exploring the state of play in Germany, the Netherlands, Greece and the UK, as well as global markets. Find out more
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Author: Sarah Sinclair
