Germany has spent the past couple of months mulling over whether or not it should legalize cannabis, a move that would potentially turn the country into the world’s largest market for legal cannabis. With Germany’s left-liberal government pushing on with plans to legalize adult-use cannabis in the country, the coalition government has undertaken a series of public hearings with cannabis growers, economists and health experts to help inform the legalization process.
If Germany chooses to legalize recreational cannabis, the move could put pressure on its neighbors to follow its lead and create enough momentum to change the UN convention barring the cultivation and sale of cannabis. The coalition government recently declared that it was going to introduce “the controlled supply of recreational cannabis” to adults via licensed cannabis shops. However, turning these words into a nationwide cannabis industry is proving to be quite a challenge.
Legalizing cannabis would require input from nearly every federal government ministry, making the entire legislative process extremely complex and time consuming. Drug and addiction commissioner Burkhard Blienert says that efforts to legalize cannabis would have to involve policing, agriculture, tax issues and youth protection, to name a few. The ideal cannabis industry would be one that allows adults to purchase cannabis from licensed specialty shops while prioritizing public health and the protection of minors.
Given that cannabis is in extremely high demand, a legal market is expected to attract millions of consumers, in turn generating billions of dollars in taxes. Based on estimates that show most of the 4 million Germans who consume cannabis do so occasionally, Dusseldorf-based economist Justus Haucap expects cannabis to have a market value of around €4 billion ($3.97 billion) to €5 billion ($4.96 billion) or about 400 tons.
During an expert meeting held at the Health Ministry last year, Haucap estimated that the possible savings made by the police force and judiciary coupled with possible revenue from cannabis taxes and social security contributions could add up to almost $5 billion per year. He was one of nearly 200 local and international experts who met to discuss marijuana legalization. According to drug commissioner Blienert, the government is expected to draft a cannabis bill based on key points before deliberating it in parliament.
He says that once the federal government has crafted a comprehensive cannabis bill, it will be up to parliament to pass the bill and facilitate the creation of a nationwide adult-use cannabis industry. According to industry representative Heitepriem, players in a potential German cannabis industry wouldn’t be able to participate in international trade due to European regulations and UN conventions. This means Germany will have to source all its cannabis internally, a feat that will require significant investment and a lead time of one to two years to allow producers to ramp up production.
By the time the German marijuana market is launched, its players could lag far behind companies such as Prime Harvest Inc., which are already operational in North America and well positioned to expand should laws change at the federal and international levels.
NOTE TO INVESTORS: The latest news and updates relating to Prime Harvest Inc. are available in the company’s newsroom at https://cnw.fm/PRIME
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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