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Tag: Germany

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The EU Is Deciding On More Than Just German Legalization

When it comes to cannabis reform activity, Germany is undeniably on center stage with the international spotlight placed directly on it. Part of that is due to the fact that German lawmakers are actively pursuing adult-use cannabis legalization and the launch of a regulated industry, and part of that is also due to how high the stakes are. Lawmakers from Germany are currently making their opening arguments to continental leaders, both on the supportive side and on the opposition side of the issue. Depending on which side succeeds, it could yield huge ramifications for the rest of Europe.

It’s quite possible that if German legalization efforts receive the blessing of the European Union, that it will be seen as the European Union (EU) giving the green light to any other country that wants to follow in Germany’s footsteps. After all, if Germany is allowed to do it, then why can’t other countries do the exact same? From that perspective, the gravity of what the EU is deciding extends well beyond Germany’s borders.

Lobbying Efforts Underway

Last week lawmakers in Germany started their efforts to educate and lobby the European Union in an attempt to yield their desired outcome. On the ‘pro’ side is German Federal Minister of Health Prof. Dr. Karl Lauterbach. Prof. Lauterbach was in Brussels last week to negotiate with EU leadership. The crux of Minister Lauterbach’s position seems to be, “protection against drug crime, legal safe consumption only for adults.”

Bavaria’s Health Minister Klaus Holetschek was also in Brussels last week. His reported intent was to achieve the opposite result compared to what is being sought by Germany’s Federal Minister of Health. Klaus Holetschek is calling on the EU to refrain from granting permission to Germany’s national legalization effort.

“The federal government’s planned cannabis legalization is not only hazardous to health, but I am convinced it also violates European law,” said the CSU politician on Wednesday according to Bild, after his meeting with the responsible general director, Monique Pariat, in Brussels. It’s unclear at this time what impact, if any, the dueling meetings had on the EU decision making process.

Framing Matters

The words used to describe the motivation behind Germany’s legalization effort will likely play a very big role in whether or not the EU grants its blessing, which was touched on by German cannabis policy expert Kai Friedrich Niermann in a previous article that I posted regarding German legalization and the EU. Kai and his law firm KFN+ advise major CBD and medical cannabis companies around the globe. Kai is also legal advisor to the European Industrial Hemp Association (EIHA), and a regular speaker at International Cannabis Business Conference events.

“In order to comply with its obligations under international drug treaties and EU law, Germany has opted for an interpretative declaration to the monitoring bodies of the UN treaties, referring to its own constitutional principles, the case law of the Federal Constitutional Court and the interpretative declaration already issued on the 1988 treaty. According to the German government, the plan to legalize cannabis in Germany is in line with the purpose and legal requirements of the conventions, as the focus of the reform is the protection of health and young people, and not the promotion of cannabis consumption.” Kai Friedrich Niermann communicated a few weeks ago after Minister Lauterbach’s presentation to the federal cabinet in Germany.

“I assume that preliminary talks have already been held with the European Commission, and that no fundamental reservations are to be expected in this respect. Particularly in view of the fact that a number of member states are also already making preparations for a reform of their national cannabis policies. Minister Lauterbach also assumes that if the EU Commission gives its approval in principle, lawsuits from other member states pursuing a more restrictive cannabis policy will have no chance of success.” he concluded.

That last part of Kai’s statement, touching on potential lawsuits from prohibitionist EU member states, is likely to prove to be tremendously significant in the coming years. Several countries are likely to follow in Germany’s footsteps, including the Czech Republic where leaders are indicating that they will pursue legalization on the same timeline as Germany. It’s likely a safe bet that just as there will be countries trying to join Germany, there will also be countries trying to prevent the spread of legalization. With that in mind, what the EU is currently considering may be specific to Germany, however, the ramifications of the decision will spread throughout the continent, so the significance of the decision cannot be overstated.

Germany

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German Cannabis Legalization Would Obviously Benefit Public Safety Efforts

Late last week an article was published by Frankfurter Allgemeine in which the Vice President of the Federal Criminal Police Office (BKA) seemed to imply that law enforcement in Germany did not believe that adult-use cannabis legalization would result in a reduction in ‘drug-related crime.’

“Only a competitive offer could lead to the black market being reduced.” BKA Vice President Martina Link was quoted as saying in the article (translated from German to English), seeming to suggest that claims about adult-use cannabis legalization’s ability to boost public safety will not materialize in Germany. The comments made by Vice President Link were coupled with statistics about seizures of other substances (cocaine, heroin, and methamphetamines) as well as horror stories involving organized crime activity in other countries.

If you have advocated for cannabis reform for as long as I have, then you know that Vice President Link’s tactics are standard anti-cannabis propaganda. Law enforcement downplaying the benefits of legalization as they pertain to public safety is as predictable as law enforcement trying to spread isolated horror stories in an attempt to scare voters and lawmakers. It’s a tactic that has been used by cannabis opponents for decades. However, unfortunately for prohibitionists in Germany, there’s direct evidence to now point to in other jurisdictions that refute law enforcement’s claims.

Reductions In Crime

One thing that I hope is obvious to everyone, and directly contradicts law enforcement claims in Germany, is that when cannabis is legalized for adult-use and consumers are no longer treated like criminals, that in itself results in a reduction in crime rates. Cannabis consumers that would have otherwise been subjected to the criminal justice system are now allowed to proceed with their lives as normal. Using Canada as an example, in 2015 alone it’s estimated that roughly 49,000 cannabis charges were applied by law enforcement. Many, if not all, of those types of cases simply do not happen now, and that in itself is enough of a boost to the criminal justice system for law enforcement to get on board with legalization in Germany, as all of that frees up law enforcement to work on actual crime.

We now know from data out of another legal state in the U.S., Oregon (where I live), that clearance rates for violent crimes improved after adult-use legalization, presumably because law enforcement had more time to dedicate to fighting those types of crimes. Oregon voters approved a legalization measure in 2014.

“The finding largely aligns with the argument made by the proponents of marijuana legalization that legalization would improve police effectiveness in addressing serious crimes, and as a result would increase clearance rates and generate a crime deterrence effect.” the researchers concluded. The findings in that Oregon study are similar to determinations made in a separate study involving Washington State, which approved a legalization measure in 2012.

Yet another study found that lower crime rates likely go beyond the legal jurisdiction’s borders. A study conducted in 2020 found that, “the property crime rate and larceny rate experienced substantial decreases in the border counties in neighboring states relative to nonborder counties following the legalization in Colorado.” Colorado passed a legalization measure in 2012. Based on the available evidence, legalization is good for public safety efforts, which should seem logical to people examining the issue objectively.

Regulation Works

Coupled with some of the reefer madness talking points, Vice President Link also expressed a strong desire to combat organized crime, announcing that new positions would be created to address the issue. I would imagine that I am not the only person to see the irony in that stated position. It is no secret that when cannabis sales are prohibited, organized crime fills the void. It is also no secret, as is being demonstrated in real-time in the Western Hemisphere, that if regulated adult-use sales are permitted then some amount of consumers will make their purchases via regulated channels, and that, in turn, directly hurts organized crime’s bottom line.

If law enforcement officials in Germany truly believe that organized crime benefits from unregulated cannabis sales, which it sure seems that they do, then they should be leading the calls for regulated sales to launch. No, the unregulated cannabis market will never be eliminated, just as unregulated alcohol and tobacco sales are not eliminated in Germany. However, that is not to say that legalization should be scrapped as a result. Some amount of adult-use purchases being made in a regulated system will always be better than no amount of adult-use purchases being made in a regulated system.

Law enforcement in Germany, taking their concerns at face value, should be making the argument that German legalization needs to be constructed in such a manner that it keeps regulated prices as low as reasonably possible in order to compete with the unregulated market in a meaningful way. Instead, sadly, they seem to be making the claim that if 100% of the unregulated market can’t be eliminated, then legalization shouldn’t be pursued at all, which is not sensible.

Cannabis legalization is good for public safety for a multitude of reasons, and one of the primary beneficiaries of legalization is law enforcement. Cannabis prohibition is a failed public policy that uses up limited law enforcement resources – resources that would be better focused elsewhere. Any minute that law enforcement spends investigating a cannabis offense is a minute that could be used to investigate violent crime. Courts should be conducting hearings for actual crime, not cannabis activity. Adult-use legalization in Germany will make things easier on both of those fronts, and anyone that claims otherwise is likely benefitting financially from prohibition.

Germany

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Is Germany Planning To Restrict Medical Cannabis Insurance Reimbursements?

Germany is home to Europe’s largest medical cannabis market, which is not surprising given the size of Germany’s population and economy. Since 2017, doctors in Germany have been permitted to prescribe medical cannabis products to suffering patients, and the cost of those products is often reimbursed by insurance companies. Having medical cannabis covered by insurance is a concept that medical cannabis advocates push for all over the globe, with Germany being somewhat of a rare success story. Unfortunately, things may be changing in Germany on this front, at least for some patients.

The Gemeinsamer Bundesausschuss (G-BA), which belongs to the Bundesministerium der Gesundheit (Ministry of Health), is tasked with reevaluating the GKV (statutory health insurance) reimbursement for cannabis medications following the finalization of the 5-year observational analysis after the medical cannabis law was initially adopted in 2017. Conclusions will rely heavily on the results of the BfArM 5-year observation.

How Will Changes Affect Germany’s Medical Cannabis Program?

One of the more restrictive changes being proposed in Germany includes general practitioners no longer being permitted to prescribe cannabis to patients whose costs are expected to be reimbursed by GKV. Such prescriptions would be reserved for specialists with additional qualifications. The policies regarding use of cannabis as a last resort could also be overhauled.

Currently, German doctors can prescribe cannabis flower instead of cannabis extracts if they feel that it’s a more suitable form of treatment. However, ‘special justification’ would be required for a cannabis flower prescription if proposed changes are adopted. Many of the proposed changes would directly increase the burden of documentation for doctors, particularly during first 3 months of treatment. For instance, doctors would also need to explain in writing why THC-dominant strains are being prescribed versus CBD-dominant strain.

All of this increases pressure on doctors to prescribe extracts instead of flowers, regardless of what is best for the patient, in addition to driving up costs for insurance companies. The process of considering proposed changes is already underway and ends at the end of this month, with a final decision on the matter possibly being rendered by early next year.

Legalization Is A Factor

What is going on right now in Germany regarding medical cannabis policy is not occurring in a vacuum. Obviously, the medical cannabis policy discussion is running parallel to the ongoing adult-use legalization discussion that is also occurring in Germany. For insight regarding how one may affect the other, I reached out to Dr. med. Julian Wichmann, Geschäftsführer/CEO of Algea Care.

“Lacking scientific evidence on the efficacy of medical cannabis remains a big issue in Germany. This is now starting to negatively impact healthcare politics and therefore reimbursement. Academic institutions and companies need to work closer together to fill this gap.” Dr. med. Julian Wichmann stated.

Algea Care has established multiple research collaborations with German university hospitals, with the first positive results recently being presented on outcomes in treating neuropathic pain with cannabis flowers.

“Increasing healthcare cost pressure and already implemented insurance premium increases have insurers looking for opportunities to reduce expenses. In pharmacies, manual work associated with cannabis prescriptions remains high due to extensive documentation duties. The plans for removing medical cannabis from the narcotics law (BtmG) could therefore lead to substantial cost savings and make medical cannabis more affordable for insurances and patients.” Dr. med. Julian Wichmann concluded.

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Where Does The German Cannabis Legalization Effort Go From Here?

As the month of October draws to a close it is safe to say that it was one of the most eventful months for cannabis policy in Germany’s history. Unless you have been living under a rock without WIFI, then you are obviously aware that Germany’s Health Minister Karl Lauterbach made a formal cannabis legalization presentation to the federal cabinet last week. The presentation came a week after points of a prior version of the legalization plan were leaked to the public, with the leaked version resulting in various levels of pushback from the public and some lawmakers.

Multiple components of the legalization plan were improved upon as October progressed, including the apparent scrapping of THC percentage limits for products sold to people 21 and older, as well as a 50% increase in home cultivation limits (from 2 plants to 3 plants). As we previously pointed out, the current legalization plan involves removing cannabis from Germany’s narcotics law entirely.

Minister Lauterbach’s presentation to the federal cabinet was truly historic and cause for celebration inside and outside of Germany. Now that the ‘excitement dust’ is settling a bit, many within the global cannabis community are wondering where things go from here?

What Happens Next?

One of the biggest takeaways from last week’s presentation comes at the macro level in the form of Germany’s government making it clear that cannabis legalization is inevitable. It’s not a matter of if, but when.

“The presentation of the key points paper by Health Minister Lauterbach was a historic date. The German government leaves no doubt that cannabis legalization is politically desired by it and will also be pushed through against all odds.” points out German cannabis policy expert Kai Friedrich Niermann.

Kai and his law firm KFN+ advise major CBD and medical cannabis companies around the globe. Kai is also legal advisor to the European Industrial Hemp Association (EIHA), and a regular speaker at International Cannabis Business Conference events.

It is expected that early next year legalization legislation will be formally introduced in Germany. However, prior to a legalization measure being formally submitted, the nation’s government will continue to seek approval from the European Union. With that in mind, the conversation regarding cannabis legalization in Germany will now shift focus beyond Germany’s borders towards the larger continental discussion.

Will The European Union Prevent German Legalization?

It is no secret that Germany is a party to various treaties, both at the continental and international level. As I have previously stated, I do not think that international treaties will be an issue, if for any reason because Uruguay and Canada have both passed legalization measures and the sky is still in place over both of those countries the last time I checked.

Just as pushback from the international community and international treaties did not derail legalization efforts in those two countries, the same will presumably prove to be true when Germany legalizes. The European Union is a somewhat different matter, although, the final result will likely prove to be the same in that the German legalization effort will ultimately prevail.

“In order to comply with its obligations under international drug treaties and EU law, Germany has opted for an interpretative declaration to the monitoring bodies of the UN treaties, referring to its own constitutional principles, the case law of the Federal Constitutional Court and the interpretative declaration already issued on the 1988 treaty. According to the German government, the plan to legalize cannabis in Germany is in line with the purpose and legal requirements of the conventions, as the focus of the reform is the protection of health and young people, and not the promotion of cannabis consumption.” stated Kai Friedrich Niermann.

“The EU Commission and the other EU member states are to be informed of this in a notification procedure. Minister Lauterbach assumes that the EU will comment on this approach in the short term, so that the legislative project can be introduced in the Bundestag as planned from January.” Kai went on to say.

“I assume that preliminary talks have already been held with the European Commission, and that no fundamental reservations are to be expected in this respect. Particularly in view of the fact that a number of member states are also already making preparations for a reform of their national cannabis policies. Minister Lauterbach also assumes that if the EU Commission gives its approval in principle, lawsuits from other member states pursuing a more restrictive cannabis policy will have no chance of success.” he concluded.

Germany

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Germany’s Legalization Plan Includes Removing Cannabis From Narcotics Law

Cannabis legalization efforts in Germany received a huge boost yesterday, with the nation’s Health Minister Karl Lauterbach (SPD) making a formal presentation to the federal cabinet regarding the most up-to-date plan for a German adult-use cannabis legalization measure. The presentation was truly historic, in part due to the fact that it happened in the first place, and also in part due to what was included in the plan itself.

As we previously reported, points from the plan were leaked last week, including some points that yielded significant pushback from the public and even some lawmakers. Many felt that some of the provisions, especially provisions involving THC percentage limits, were too restrictive. Fortunately, the plan that was presented yesterday by Health Minister Lauterbach addressed many of the components that were largely the focus of negative feedback.

One provision of the current legalization plan in Germany will no doubt prove to be extremely significant if/when it is implemented. Point 5 on page 4 of the Eckpunktepapier contains a key sentence, “Genusscannabis, Medizinalcannabis und Nutzhanf werden vollständig aus dem Anwendungsbereich des BtMG ausgenommen und die jeweiligen rechtlichen Rahmenbedingungen werden in einem gesonderten Gesetz festgelegt.”

That sentence can be translated to English as, “Recreational cannabis, medical cannabis and hemp will be completely removed from the domain of the narcotics law (BtmG) and the individual legal frameworks will be determined in a separate law.”

Minister Lauterbach was specifically asked about this provision of the plan during his presentation to the federal cabinet, as described below:

Obviously, removing cannabis from Germany’s narcotics law would have enormous ramifications, and would affect nearly every aspect of cannabis policy, industry, and research. The benefits of removing cannabis from Germany’s narcotics law would not only benefit adult-use cannabis efforts; it would also benefit the nation’s emerging medical cannabis patients, program, and industry.

“Regulating cannabis not as a narcotic anymore has extremely positive implications particularly for medical use. This step opens the door to electronic cannabis prescriptions and immediate transfer to the pharmacy which can then ship the medication to patients. We are already preparing for a fully digital pathway for patients with 24h between video consultation and cannabis medication delivered to your doorstep.” stated Dr. med. Julian Wichmann, Geschäftsführer/CEO of Algea Care. Algea Care is Germany’s leading platform for therapy with medical cannabis.

“We also expect the conditions for cannabis research to be drastically improved. It will probably also be much easier for academic institutions to obtain national or EU-provided funds for specific research projects, as there will be a rapidly increasing demand for research on both medical and recreational cannabis intake.” Dr. Wichmann went on to say.

How countries have historically classified cannabis, including Germany, has created tremendous hurdles for cannabis research and the emerging cannabis industry. That, in turn, makes it extremely tough for patients who are at the mercy of what conditions qualify for medical cannabis and what safe access options they have in their area. Unfortunately, due to limitations in research many patients are left on the outside looking in. Removing cannabis from Germany’s narcotics law would provide a compassionate boost to suffering patients all over the country and increase safe access.

“Our goal is to make medical cannabis treatment as accessible and seamless for anyone with a medical condition suitable for treatment. Deregulation away from narcotics can facilitate that. Research from the U.S. shows that up to 40% of recreational customers are actually trying to mitigate symptoms but often don’t achieve the results they’re hoping for. The different tax treatment may potentially lead to a situation in which medical cannabis is cheaper than at recreational stores and accessible with a better digital journey.” described Dr. Wichmann.

The discussion regarding cannabis’ classification status is not limited to Germany. The United States is currently ‘examining’ the classification status of cannabis at the federal level, per a recent directive from U.S. President Joe Biden. However, unlike Germany, the discussion in the United States involves whether cannabis should be descheduled or rescheduled. Germany’s plan seems to have already landed at descheduling, or as it was more properly described by reporter Alfredo Pascual’s tweet embedded above, cannabis is ‘to be removed from the narcotics law,’ which is effectively the same as descheduling.

The significance of what is being proposed in Germany cannot be overstated. In addition to the expressed desire to remove cannabis from Germany’s narcotics law, it is a welcomed sight to see that home cultivation was not only included in the plan presented yesterday, but also that the home cultivation plant limit was raised from 2 plants that was part of the leaked points last week, up to 3 plants this week.

For perspective, Washington State in the U.S. still prohibits home cultivation for adult-use purposes despite having passed a legalization measure back in 2012. Illinois and New Jersey also prohibit adult-use home cultivation despite having also passed legalization measures. And all the while cannabis remains prohibited at the federal level in the U.S. With all of that in mind, the sensible proposal in Germany is great news for consumers, patients, researchers, taxpayers, entrepreneurs, investors, and just about everyone else in German society, whether they consume cannabis or not.

Germany

Germany Health Minister Karl Lauterbach

Germany Moves A Step Closer Towards Legalization

It was a big day in Germany for cannabis policy, with Germany’s Health Minister Karl Lauterbach making a formal cannabis legalization presentation to the federal cabinet. While the presentation did not involve the formal introduction of legislation, it did serve as the closest thing to a comprehensive status update so far in the German legalization process.

Much of what was presented today was already known via an interesting week of policy leaks and public statements by elected officials. Although, there were some items of note from the presentation, including news that prior to a formal measure being introduced Germany will continue to seek approval from the European Union.

“Berlin will check with the European Union’s executive commission whether the plan approved by the German government is in line with EU laws and would proceed with legislation “on this basis” only if it gets the green light, Health Minister Karl Lauterbach said” according to ABC News.

Per Health Minister Lauterbach, Germany will continue to examine whether regulated social consumption will be allowed, as well as the sale of edibles, however, the current plan does not permit for either of those policy and industry components.

Pending successful movement on the European Union approval front, Health Minister Lauterbach indicated that a formal bill would be introduced for lawmakers’ consideration in 2023, with legalization hopefully becoming law by 2024. Below is Health Minister Lauterbach’s presentation in full (broadcast in German):

Germany

Brand Front Of The Brandenburg Gate Berlin

German Legalization Plan Continues To Evolve After Public Outcry

Last week I wrote about the reported leaking of components of a long awaited German legalization plan. The legalization details were reportedly from Health Minister Karl Lauterbach (SPD), and provided the first deep dive opportunity for global cannabis policy and industry observers who have all been heavily focused on all things cannabis and Germany ever since the dust settled on the 2021 federal election. German voters elected a new governing coalition in 2021 and the coalition, often referred to as the Traffic Light Coalition, quickly indicated its intent to pass a legalization measure and launch a regulated adult-use industry.

A new report is out today from The Rheinischer Post which indicates that Health Minister Karl Lauterbach will present a legalization plan to the federal cabinet tomorrow. The new report also indicates that some components of the plan have evolved after significant public pushback occurred regarding the previously leaked components.

As I touched on in my previous article, it’s a common political strategy to ‘float political balloons’ via leaks and public comments to see if the public ‘pops’ the metaphorical balloons in the form of public outcry. Lawmakers use that strategy during political negotiations from time to time to force their opponents to relent to some degree. I suspect that is what happened last week given the fact that the measure seems to have improved post-outcry, although admittedly, that is just conjecture on my part. Regardless, the evolved components of the plan are significant nonetheless, and are the exact ones that were the main focus of public pushback.

What Changed And What Remained The Same?

The legal age for adult-use cannabis, 18 years old, was unchanged in the reported latest version of Germany’s legalization plan, which was expected. The initial 20 gram possession limit appears to now be described as ‘a maximum of 20 to 30 grams.’ Public outcry regarding possession limits was not limited to just citizens, as deputy FDP chairman Johannes Vogel was also very vocal about his opposition to the 20 gram limit. A prohibition on advertising remained unchanged, as well as the types of outlets that may be allowed to legally sell adult-use cannabis (licensed stores and pharmacies).

Arguably the greatest differences between the components leaked last week compared to what is going to be reportedly presented tomorrow hinges on THC limits for products. Initially, it was being reported that there would be a 15% THC limit on products sold to people over 21, and a separate 10% THC limit on products sold to people of legal age under 21. Per The Rheinischer Post’s reporting (translated to English), there will be no cap for people 21 and over, however, “Because of the increased risk of cannabis-related brain damage in adolescence, it is being examined whether an upper limit for the intoxicating substance THC will be set for adults up to the age of 21, according to the paper.”

Another significant change from last week’s version of the plan compared to this week’s pertains to home cultivation. Last week’s version reportedly involved a two plant limit for home cultivation, however, this week’s version has a three plant home cultivation limit. By comparison, in Malta adult households can cultivate up to four cannabis plants. Malta is the only country in Europe that has passed an adult-use cannabis legalization measure, although adult-use cannabis sales remain prohibited in Malta.

Will There Be More Changes?

If there is one major takeaway from what has transpired in Germany over the course of the last week, it’s that the legalization process is still very much ongoing. It is virtually guaranteed that there will be further tweaks made to the legalization plan in Germany, and it’s largely just a question of what will change. Furthermore, even the evolved plan still leaves quite a few extremely important items to finalize, including the actual personal possession limit, potential THC limits for products sold to younger adults, and laws pertaining to edibles. And all the while there are still continental and international treaty concerns to be worked out.

As The Rheinischer Post stated in it’s coverage (translated to English), “The cabinet referral is an intermediate step.” The political process can be full of twists and turns, especially when it involves something as monumental as launching the world’s largest legal cannabis market. Currently, the only public policy and regulation ‘guidebook’ for launching a national adult-use cannabis industry open to the world is Canada, and for a multitude of reasons Germany is an entirely different situation compared to Canada. Germany can learn some things from Canada to be sure, however, much of the heavy political and regulatory lifting in Germany is completely unique, and as such, people would be wise to anticipate more changes in the future, albeit more on the fringes versus a complete overhaul. For cannabis advocates specifically, it’s wise to remain vocal and keep the pressure on because, as we witnessed over the course of the last week, that pressure can result in improved changes to what is being proposed in Germany.

Germany

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Leaked German Legalization Points From Health Minister – Homegrow, Retail Stores, And Possession Of Up To 20 Grams

This morning it is being reported that long-awaited key points of a German adult-use legalization plan were made available to Germany’s media community. The provisions being leaked out there are reportedly from Health Minister Karl Lauterbach (SPD), and are providing tremendous insight into what a finalized coalition plan may look like. Obviously, there’s still a lot of political lifting to be performed between now and when someone is physically purchasing regulated adult-use cannabis in Germany, however, this is the first look of its type into what the governing coalition is at the very least strongly considering, if not outright trying to implement.

Last year Germany elected a new coalition government, and after the dust settled on the election results the coalition made it abundantly clear that it was going to pursue adult-use legalization and the launch of a regulated national industry. To date, only Uruguay, Canada, and Malta have passed a national adult-use measure, and out of the three, only Canada has a regulated adult-use sales system that is open to anyone of legal age regardless of citizenship status.

What Provisions Are Involved?

According to the initial reporting from RND, the legalization components that are involved originated from the Health Ministry, and the plan “is currently being coordinated among the [other] ministries involved,” which is leading many to believe that there still could be some changes made to what is being floated out there. As I previously touched on, there’s still a lot of time left on the clock to use a sports metaphor.

In my opinion, the provisions were leaked versus announced in order to see what the reactions were from the public and international community, with the possible plan to make tweaks accordingly. That’s just conjecture on my part, but it is a common political communications tactic, particularly with legislation of this magnitude. It’s a great way to gain feedback and insight while also mitigating controversy. With that being said, below are some of the major components involved in today’s news:

  • 18 years old is the legal age to purchase/possess cannabis
  • A 20 gram possession limit
  • Home cultivation of up to 2 plants
  • A 15% THC cap limit on products sold to people over 21
  • A 10% THC cap limit on products sold to people 18-21
  • Retail buffer zones around schools and other specified establishments
  • A general ban on industry advertising
  • Outlets would include, but not be limited to, pharmacies
  • Possibly allowing shops to have ‘consumption options’
  • A possible tax assessment based on THC content
  • All cannabis for the market will be cultivated domestically

“The Federal Ministry of Health did not confirm the RND report on request and referred to ongoing votes in the federal government. A Lauterbach spokesman said the departments of health, justice, economy, nutrition and the Federal Foreign Office were working together to implement the coalition agreement. Lauterbach had announced a key issues paper for the fall and a draft law for the end of the year.” RND stated in its reporting.

Room For Improvement And Clarification

Here in the United States, where I live, the state-level legal age for cannabis is 21. The legal age in Canada and Uruguay is also 18. Malta, which was the first nation to legalize cannabis for adult use in Europe, also has a legal age of 18, although sales are currently not permitted in Malta. I have always felt that if someone is old enough to vote for legalization, or for candidates that support it, then they are old enough to participate in a legal market. Regardless, allowing industry access to people 18-21 obviously expands the market base, albeit with the apparent potential for a different THC product limit for that subset of customers.

The 20 gram possession limit is considerably greater than what is allowed in Malta away from a person’s home. In Malta, the possession limit away from a person’s home is only 7 grams, although up to 50 grams is allowed within a person’s home, along with up to four plants. The two plant cultivation limit that is being reported out of Germany is drawing some pushback, as many feel that the limit is too low. One thing that could prove to be problematic is the possession limit combined with the plant limit, as even one healthy cannabis plant cultivated in a closet can yield far greater than 20 grams of cannabis. It seems that more could be done to harmonize the two limits in order to help mitigate any issues for consumers come harvest time.

The retail buffer zones and advertising bans were to be expected, and I certainly think that they will ultimately make it into whatever final version of a legalization model is adopted. Advertising bans can be tricky to enforce given how many different ways people get their information these days, particularly on the internet, however, we will have to wait and see what enforcement strategies may entail. The reported THC caps may be the most confusing aspect of what was reported today, in that it seems to be unclear if that will apply to things like vape pen cartridges and cannabis concentrates. It’s common for products in other legal markets of those types to contain a considerably larger THC percentage than 10-15%. That’s something that will need to be further addressed in a finalized plan.

The German Retail Model Is Taking Shape

Arguably the most insightful components of today’s news related to how cannabis will be sourced, sold, and consumed in Germany once a legal, regulated market is launched. Ever since a push to legalize was announced, many cannabis observers around the world wondered if adult-use cannabis sales would be limited to pharmacies? If what is being reported today eventually becomes adopted, then the retail options for consumers will be far more robust. In addition to pharmacies, cannabis would also be sold in dedicated stores, and possibly via the internet, which is currently an option in Canada.

Other components that were leaked today could change and evolve, however, the basic sales outlet model provisions are likely to remain the same from a macro perspective. Again, there’s still a lot of lifting to be done to get something across the finish line, yet I think it’s safe to assume that once legal sales are launched in Germany they will be allowed via a number of different ways beyond just at pharmacies. Legal social consumption lounges seem to be a very real possibility too based on what we have seen today.

The domestic cultivation part also seems to be a component that will be set in stone, at least for the foreseeable future, and the significance of that cannot be overstated. In order to get around issues with international and continental treaties, it sounds like all cannabis for the adult-use market will need to be produced within Germany’s borders. I assume that will be completely separate from medical products, which will presumably still be imported in addition to being produced domestically.

As I have pointed out countless times in my articles, the German market will not just involve consumers from Germany. Germany shares more borders with other countries than any other nation in Europe – nine total. When Germany inevitably launches legal adult-use sales, it will be largely doing so for the entire European continent, as well as for any tourists that will no doubt flock to Germany in record numbers from other continents to partake in the newly established freedoms. I don’t know exactly how much German cannabis supply will be needed to match the demand that will be flooding into Germany’s borders, but it’s a very safe bet that it’s going to be unlike anything that the legal market has ever seen before, and cultivation licenses within Germany’s borders are going to likely become the most sought after cannabis licenses on earth as a result.

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US Germany

Who Legalizes First – The United States Or Germany?

When it comes to cannabis policy there are two nations that likely have more eyes watching them right now than any other countries on the planet – Germany and the United States. It is no secret that many lawmakers in Germany are working really hard right now to determine which provisions should be included in a national cannabis legalization and industry model. It is also no secret that United States President Joe Biden recently tasked federal Departments with re-examining cannabis’ current status in the U.S.

Efforts to reform national cannabis policies in both countries are making headlines, and understandably so, as both Germany and the United States are home to two of the largest economies on earth, and both countries wield tremendous political influence around the world. However, that is not to say that the efforts in both nations are on the same trajectory or timeline, as that will almost certainly prove to not be the case. One nation is far more likely to legalize at the national level soon than the other one.

Germany Is ‘In The Lead’

One thing that is always important to point out is that nothing is guaranteed in the world of politics. With so much rhetoric being thrown around by lawmakers and aspiring lawmakers, especially these days, nearly everything needs to be taken with a grain of salt. As the old saying goes, ‘actions speak louder than words,’ and from that perspective Germany is clearly farther along in its effort to legalize nationally compared to the United States.

The current governing coalition in Germany previously announced direct intent to legalize cannabis for adult-use and to launch a regulated national industry. Since that time, many members of the governing coalition have engaged with stakeholders in multiple ways, gaining insight and feedback, and working meaningfully towards their goal. The process is not going as fast as many had hoped, however, just as Rome wasn’t built in a day the same is obviously true for a country trying to launch what will instantly become the world’s largest regulated cannabis market by far.

Compare that to the United States where things are much more fractured, both from a governing standpoint and an industry standpoint. Yes, President Biden did issue pardons for simple possession and tasked Department leaders with re-examining cannabis’ current federal status. However, that is not the same as Biden taking the lead on pushing for a regulated national industry. It’s quite possible that nothing could occur between now and when Biden is up for re-election, and it’s anyone’s guess where things go from there if/when he is not re-elected.

Furthermore, Biden can only do so much, as the burden for much of the work that needs to be performed lies on the shoulders of Congress. The current Congress has failed to get even a limited legalization measure passed, and with another election looming next month, the deck will be re-shuffled and likely in a manner that doesn’t move the needle. In fact, if the needle is moved, it will likely be in the wrong direction given historical midterm election trends in the U.S.

Adding To Momentum

Make no mistake – both the United States and Germany will legalize federally sooner rather than later, although, Germany is likely to do so on a quicker timeline compared to the U.S. Whereas Germany will presumably legalize nationally in one fell swoop, the U.S. will continue to see state after state pass their own legalization measures until the point where it reaches such a critical mass that it tips the scales. And just as every state that legalizes adds to the momentum for federal reform in the U.S., so too will legalization in Germany add to the momentum of efforts in the U.S.

The United States would be a larger domino between the two countries given that the United States has historically led the charge on prohibition and its economy is bigger. Yet, that doesn’t seem to be on the horizon in the U.S. The two largest economies behind the United States are China and Japan, and neither of those countries will be legalizing anytime soon, unfortunately. That puts the spotlight squarely on Germany, and once the German prohibition domino falls it’s going to speed things up everywhere else on earth, including in the United States.

Germany, united states

germany flag

German Federal Court Of Justice Upholds CBD Flower Convictions

Germany’s Federal Court of Justice issued a decision this week that could have potentially huge ramifications for the nation’s emerging cannabidiol (CBD) industry. Two defendants were originally convicted in 2021 in a lower court in Berlin for selling large quantities of CBD flower, and that decision was upheld by the higher Court.

Low-THC cannabis flower that is high in CBD is widely available in not only Germany, but throughout Europe. ‘Cannabis light,’ as it is often referred to, contains very little THC, which is what the defendants were buying and selling. Unlike THC, CBD is not associated with inducing intoxicating effects among those that consume it.

Unfortunately, the lower court was not swayed by any of the defendant’s arguments, and neither was the Federal Court of Justice. Below is a press release from the Federal Court of Justice regarding the decision, translated from German to English.

It contains the details regarding the Court’s legal reasoning behind its decision, which seems to be resulting in a lot of head scratching among the international cannabis community. At the very least, the decision will likely send some level of a chilling effect across Germany’s emerging CBD industry, as the legal reasoning can also be applied to a large number of other people and entities.

This decision further highlights the need for comprehensive cannabis policy reform in Germany:

The Leipzig-based 5th Criminal Division of the Federal Court of Justice has rejected the appeals of two defendants against a Berlin judgment in which they were sentenced to imprisonment in particular for trading in CBD flowers.

The Berlin Regional Court sentenced one of the accused to total imprisonment of three years, nine months and ten months (the execution of which it suspended on probation) for, among other things, gang dealing in large quantities of narcotics in two cases and the other for aiding and abetting in this.

According to the judgment of the district court, the main defendant – with the support of the second defendant and an unknown third party – acquired 60 kg of cannabis plant flowers with a high proportion of the active ingredient cannabidiol (CBD) in September and October 2019. He sold the CBD flowers to wholesalers for a profit, who in turn sold them to late sales outlets and CBD shops.

The comprehensive review of the judgment prompted by the factual complaint did not result in any legal errors to the detriment of the accused. In particular, the district court rightly classified the CBD flowers as narcotics within the meaning of Annex I to the Narcotics Act (BtMG). The flowers did not fall under a cannabis exemption. They did have an active ingredient content of 0.2% THC and thus did not exceed the limit specified in the exemption. However, there was no requirement that abuse for intoxicating purposes must be ruled out. If the flowers were heated during baking, for example, this led to the release of further THC, which could produce a cannabis intoxication when consumed by the end user. The main defendant was aware of this, but his assistant was indifferent.

Contrary to the opinion of the appeal, the conviction for trading in CBD flowers does not constitute a violation of the free movement of goods under European law (Art. 34 TFEU) that the flowers were legally produced in Spain. Because the flowers were narcotics, with which trade is prohibited from the outset and which are therefore not subject to the free movement of goods. The standards of European law on which this assessment is based were so clear according to the relevant legal norms and so far clarified by the case law of the Court of Justice of the European Union (ECJ) that there was no reason to obtain a decision from the ECJ on compatibility with European law (Art. 267 TFEU ).

In view of the possibility of a health-endangering misuse of CBD flowers for intoxication purposes, the Senate did not see any violation of the constitutional prohibition on excess in the punishability of trading in them.

The judgment of the Berlin Regional Court is now final.

Lower court :

LG Berlin – Judgment of July 7, 2021 – (510 KLs) 254 Js 38/20 (9/20)

The relevant regulations are:

Annex I to § 1 Para. 1 BtMG (non-marketable narcotics)

Cannabis (marijuana, plants and plant parts of plants belonging to the genus Cannabis)

– except (…)

b) if (…) their tetrahydrocannabinol content does not exceed 0.2 percent and they are used (except for cultivation) exclusively for commercial or scientific purposes that exclude misuse for intoxicating purposes. (…)

Art. 34 TFEU Ban on import restrictions

Quantitative import restrictions and all measures having equivalent effect are prohibited between Member States.

Art. 36 TFEU exceptions

(1) The provisions of Articles 34 and 35 shall not preclude import, export and transit bans or restrictions which (…) are justified to protect human health and life (…).

2. However, such prohibitions or restrictions shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

Article 267 TFEU

(1) The Court of Justice of the European Union decides by way of a preliminary ruling

a) on the interpretation of the contracts,

b) on the validity and interpretation of the acts of the Union institutions, bodies, offices or agencies. (…)

(3) If such a question is raised in pending proceedings before a national court, the decisions of which are themselves no longer subject to appeal under national law, that court shall be bound to refer the matter to the Court of Justice.

Karlsruhe, October 12, 2022

Germany

hanover germany

German Finance Minister: Expect Cannabis Legalization In 2023

When it comes to the push for adult-use cannabis legalization there’s no place on earth that is as exciting as Germany right now. Late last year a new coalition government was elected in Germany, and the ‘Traffic Light Coalition,’ as it is commonly referred to, made it clear very quickly that it sought to legalize cannabis for adult use and launch a regulated market. Speculation has swirled ever since regarding how long it will take for Germany to make the transition, and the nation’s Federal Finance Minister Christian Lindner (FDP) recently weighed in predicting that legalization would become a reality in 2023.

The comments by Finance Minister Lindner came at a FDP state election campaign event in Lower Saxony, apparently in response to cannabis advocates that were in attendance and holding up signs with hemp leaves that read (translated to English) “A bag with Christian Lindner.” Various other elected officials in Germany have also weighed in over the course of the last year, and the general consensus seems to be that legalization may arrive as early as next year, however, it could take as long as 2025 to become a fully implemented reality.

Not An Easy Task

Some cannabis advocates are expressing frustration regarding the current legalization process in Germany, which is understandable given that cannabis prohibition is the law of the land when it comes to consumers in Germany, and prohibition is a harmful, failed public policy. However, it’s important to keep things in perspective. Germany may not be the first nation to roll out a nationwide adult-use industry, yet it is certainly the first to try to do so on such a large scale.

The only three countries to legalize cannabis beyond low-THC, and at a national level, are Uruguay, Canada, and Malta. Germany’s population is roughly twice the size of all three of those other countries’ populations combined. The size of Germany’s economy is more than twice the size of those other countries’ economies combined. Unlike the other three legal countries, Germany shares a border with nine other countries, many of them being home to their own large populations and economies. Legalization absolutely needs to happen in Germany, but it needs to happen the right way and that will take some time.

The Prohibition Dam Will Burst

As alluded to earlier in this article, Germany is not legalizing cannabis in a vacuum. Every lawmaker and regulator around the globe that wants to see cannabis legalized is watching Germany with a very close eye right now, as the push to legalize in Germany will largely serve as the ‘guidebook’ for efforts elsewhere. What will the legal age be? What will the personal possession limit be? How many plants can a household cultivate? Will social use establishments be allowed? What should testing standards be? What will the business licensing forms entail? How many offices and government positions will be needed to oversee the industry? These are just a sample of questions that have to be completely vetted and sorted out. A lot of stakeholders have to be afforded an opportunity to weigh in, and some level of consensus has to be reached for every facet of Germany’s future cannabis policy.

All the while lawmakers and regulators are crafting plans and strategies without anyone truly knowing how much demand Germany will experience once legal sales begin. Current legal nations are not good comparators, as Germany is a completely different animal. Canada is the only country on earth right now where anyone of legal age can make a regulated purchase. Uruguay limits sales to residents and Malta does not have any industry framework in place. Even if those countries had models similar to Canada, they still would not be good comparators.

When Germany launches its adult-use industry domestic and foreign consumers will no doubt flock to retail outlets at levels literally never seen before in the emerging global cannabis industry. I personally think that Germany should do a staggered rollout with possession, cultivation, and consumption provisions being implemented sooner than industry provisions, as they are far more straightforward. By doing so, Germany will instantly save money by no longer enforcing failed public policy and individual consumers will finally experience freedoms that should have never been taken from them in the first place.

Germany

cannabis flower plants buds garden

Scenes From German Cannabis Legalization In Progress

The German government is clearly moving forward with plans to legalize the plant. A delegation of Bundestag members is currently touring California – and last week two members of the SPD gave a progress report via Instagram

If there was a portrait of the in-progress discussion over German cannabis legalization to be sketched, it would be this. Very earnestly, very soberly and very deliberately, lawmakers are trying to both research North American cannabis markets and give the German people a general idea of where the legislation is heading.

SPD Informal Briefing Via Social Media

Last week, two members of the SPD, Carmen Wegge and Dirk Heidenblut went on Instagram to give an update into how legalization legislation was progressing. There were few surprises – starting with the fact that the government does not believe that international law – of either the EU or global kind – will derail the legalization initiative.

Beyond this, they both stated that they expect the draft legislation to be introduced either at the end of this year or early next, and the legislation to pass by next summer.

Home grow is very likely to be included in all of this. Online sales are almost certainly not going to be allowed. The Bundestag is also looking at both pharmacies and social clubs beyond dispensaries for legal sales.

Beyond this, it is also likely that cannabis will be allowed to be both domestically grown and imported, and that decriminalization will be part of the final legislation – not be implemented beforehand.

German Bundestag Delegation in California

As reported in the German zeitung Tagesschau, the Bundestag is keeping busy during the California leg of their North American cannabis research tour. The delegation is visiting as many as three cities a day to understand how the state has implemented recreational reform.

The takeaways? That the legal cultivation of cannabis is not profitable in the American model, and that the black market is still its biggest competition. Further, while they were impressed by the range of edibles available and are not ruling this aspect of the rec market out at home, candy that appeals to children, like gummy bears, is likely to be excluded.

Beyond this, the fragmented nature of regulation, from town to town is not likely to be a part of the approach in Germany. A national approach is something that seems to be more attractive.

Germany

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