More Germans could soon be putting down the stein of pilsner in favour of der marihuana-zigarette as the country approaches recreational weed legalization.
What happened: Germany’s cabinet passed a bill legalizing the recreational use and cultivation of cannabis. Once the bill passes through the German parliament, which should happen later this year, pot will become legal in the EU’s biggest economy.
- The legislation would allow adults to possess up to 25 grams of pot—acquired as a member of not-for-profit “cannabis clubs”—and grow up to three plants.
Why it matters: Canadian pot producers are hoping that Germany can offer the industry a lifeline. Recent earnings show major players, including Canopy, Aurora, and Tilray, are still struggling to achieve profitability amidst supply concerns and a persistent black market.
- A major problem facing producers is oversupply, which Germany could solve with demand from a market twice the size of Canada’s.
- Canada is also already Germany’s largest supplier of medical marijuana, and many producers have already made inroads in the country.
It’s a match made in doobie heaven…
…if Germany actually allows pot imports. Even after the bill passes, foreign imports of recreational weed will remain illegal, so as not to stir issues with less pot-friendly neighbours.
What’s next: Producers are hopeful that this will eventually change as other EU countries grow more receptive to pot and Germany is forced to turn to imports to meet a projected demand of 400 tonnes annually.—QH