In 2021, approximately 4 million people used cannabis in Germany. That’s about 5% of the total population.
At the end of last year, Karl Lauterbach (health minister of Germany) rolled out a plan that would allow for the possession of up to 30 grams of cannabis. The plan also included the sale of recreational cannabis, similar to what the U.S. and other countries have done.
However, when this plan was unveiled, it was also stated that the EU and European Commission would have to be on board for this to move forward. Unfortunately, the EU recently decided that it was too ambitious. So, the plan has been broken up into two phases to allow for a smoother transition into recreational cannabis.
Two-Phase Cannabis Plan in Germany
Phase 1
In the first phase of Germany’s legalization, possession of up to 25 grams will be allowed as well as the ability to cultivate up to three plants at home. This is on par with what Lauterbach had originally wanted. The big change came from the distribution side. Instead of recreational stores opening across the country, cannabis clubs will be created.
These “clubs” can distribute cannabis to members, with a maximum of 500 members per club. According to DW, “Clubs can provide members up to 50 grams of cannabis per month and no more than 25 grams at once…” The bill for this is supposed to be ready to go by the end of April 2023.
While it isn’t full legalization, it gives consumers choices other than the black market.
Phase 2
This phase will begin the rollout of recreational sales and supply chains in certain regions of Germany. In a recent Politico article, it was said that this “will take five years and will be evaluated constantly.” We are assuming that this phase will take five years from the time it is started, which is unknown at this point.
Win or Loss for Consumers?
In our eyes, (the consumer) we think it is a win! It’s not the best outcome, but it is still better than cannabis being completely illegal. Consumers will now have ways to use cannabis without consequences from the law.
Although it will take some time for full recreational sales, the chance for infrastructure and supply chains to be built in that time is a positive. This ensures that there will be no shortage of products and plenty of variety in terms of product and price point. Both are major factors in keeping consumers happy.
Our Thoughts
Lauterbach seems to have reiterated his sentiment that the country would make its decision based on the EU’s decision. He stayed true to his word, so the decision shouldn’t come as a surprise to anyone. We think this is a smart choice for Germany. It gets them a step closer to full-on legalization and enables them to trial run for now. Spain and Portugal run similar club models and should be a baseline guide for the Germans.