Despite many challenges,
European cannabis reform lurches forward with Germany leading the way
Despite many challenges,
European cannabis reform lurches forward with Germany leading the way
Rallying in Berlin with Optimism
he cannabis industry is rallying in Berlin for the International Cannabis Business Conference with a renewed sense of optimism, and some attendees perhaps even seeing the sun peeking through the economic storm clouds that have hovered over the industry for the better part of the last two years.
Make no mistake, the challenges are still immense. While many European countries have taken steps to legalize cannabis for medicinal purposes, there are still massive obstructions preventing market maturity, let alone progression toward adult-use legalization.
Arguably the largest and most obvious challenge is that Europe is not a monolith. Each country has its own legal framework and approach to cannabis legalization. Establishing a regulatory framework for legalized cannabis is complex and governments are choosing to individually tackle issues such as quality control, labeling, advertising, taxation, licensing, and age restrictions. Creating an effective and comprehensive regulatory system takes time and resources and has frankly not been a priority for many countries. As cannabis legalization progresses in various European countries, there is a need for harmonization of regulations to address cross-border issues, but fostering this kind of international collaboration is easier said than done.
In addition to lingering stigma, limited public education, and health and safety concerns typically espoused by anti-reformers, another wrinkle presents challenges to full-on legalization in Europe: international treaties. Several European countries are signatories to the UN Single Convention on Narcotic Drugs and other documents that classify cannabis as a controlled substance. These treaties impose restrictions on the legalization of cannabis, making it difficult for countries to fully legalize without potential repercussions or conflicts with their international obligations. This is particularly problematic for members of the European Union.
Which brings us to Germany, where reason for optimism is slowly beginning to sprout as the cannabis world reconvenes there once again. Germany – Europe’s largest country with a population over 83 million – is already the largest cannabis market in Europe, having legalized for medicinal use in 2017. This has led to an increase in demand and the establishment of a large and growing legal cannabis market, where health insurance providers are required to cover the costs of prescribed cannabis for eligible patients. The government successfully implemented a well-regulated framework for cultivation, distribution and sale, with strict quality control standards and safety regulations. This, along with popular demand and a progressive coalition government has led Germany to now propose a pilot program to test an adult-use legalization framework on a limited basis.
While it’s far too early to celebrate the arrival of widespread legalization and acceptance of adult-use cannabis in Europe, the signs are there. The continent’s leading economic and political force, Germany, has established the dominant medical framework and is now looking to expand it to all adults. The cannabis legalization landscape in Europe is continuously evolving, and other countries such as the Netherlands, France, Switzerland and Czech Republic continue to push the envelope. Change comes slowly, but the will of the people and the creativity and tenacity of our industry will prevail.