According to reports, the three parties expected to form the next government in Germany have agreed to regulate the distribution and sale of recreational cannabis, according to a coalition agreement released Wednesday.
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Businesses also are hoping to profit from sales of the cannabis under the watchful eye of government regulators. The document contained has no details at all.
“We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors,” according to a small section on “Drug Policy” that is part of the 177-page agreement.
At the moment, it’s unclear where cannabis reform ranks among the coalition’s long list of promises.
The parties also have said they plan to review the law after four years to weigh its social impact.
The three-party coalition is poised to take power from the current conservative government as early as December, also pending ratification of the agreement.
Alfredo Pascual, vice president of investment analysis at Seed Innovations, told MJBizDaily that the agreement is confirmation the incoming government intends to legalize adult-use cannabis.
“But the timeline until a recreational market will be established is largely unpredictable at the moment,” Pascual said.
“With almost no details provided in the coalition agreement document, ‘legalization’ could end up meaning many different things.”
Pascual noted that an actual legalization bill still needs to be drafted and approved.
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Any law and regulations, yet to be drafted, would carve out an addressable adult-use marijuana market for businesses.
Final approval could face resistance by the Bundesrat, which represents the nation’s 16 federated states at the federal level.
The Bundesrat, the second legislative chamber that acts as counterweight to the Bundestag federal parliament, will continue to be controlled by the conservative party of outgoing Chancellor Angela Merkel for at least the next year or two, “maybe longer depending on future local elections results,” said Pascual, a former MJBizDaily journalist.
“There are also international implications, possibly challenges, at the EU and U.N. level that incoming policymakers will have to consider when they go through the actual legalization process.”
The European Union reference is to the Council Framework Decision 2004/757/JHA, and the United Nations reference is to the 1961 Single Convention on Narcotic Drugs.
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