Forming a three-party coalition will enable Germany to become the first country in the Old Continent to regulate the use of recreational cannabis. Centre-left Social Democrats (SPD), the Greens, and the Free Democratic Party (FDP) are the three parties that will join to discuss the policies that would authorise and regulate the use and sale of recreational cannabis in Europe’s largest economy. Olaf Scholz, leader of the centre-left Social Democrats (SPD), is conducting the talks. This recent event has revolutionised the cannabis industry and favoured the new markets related to this plant.
After only 4 months since a medical cannabis plantation was legally harvested for the first time on German ground, the country prepares to play in the big leagues along Canada and Uruguay, introducing legislation on the recreational use of cannabis and leaving the old and failed prohibitionist model behind. For the time being, Germany meets medical cannabis demand through imports from Canada. Companies such as Aphira, Aurora, and the German enterprise Demecan are at the forefront and, since 2017, they have been bidding for public tenders that allow them to work in the country under a regulatory framework for cannabis use.
Medical Cannabis On the Rise in Germany
Nowadays, up to 90,000 people in Germany are estimated to use cannabis for medical purposes—and the numbers are still increasing. This is a great sign for crowdfunding companies and businesspeople who look up to the economic outcomes in Canada and Uruguay, because—since regulations on recreational use were introduced—the industry has known no ceiling. According to a study carried out by the German Hemp Association and the Institute for Competition Economics at the Heinrich Heine University Düsseldorf, cannabis legalisation in Germany could bring in an additional tax revenue of 3,400 million euros a year. Apart from that, this measure is expected to save 1,300 million euros a year in police and court costs, and spark a wave of new jobs in the cannabis chain of production.
A 2020 report by the Federal Institute for Drugs and Medical Devices estimates that almost ten tonnes of cannabis were imported into this country to meet medical demands. All things considered, Germany could rapidly become a cannabis superpower if the country deploys its productive capacity and adopts news regulations in favour of legalisation. On the same note, consultancy firm Prohibition Partners has released a report stating that Germany is expected to add over 3,000 million euros in annual revenue by 2025, up from about 400 million euros this year, if a comprehensive cannabis regulation was adopted.