Germany decriminalized medical cannabis some four years ago, and now analysts at the Institute for Competition Economics (DICE) suggest that the decision to fully legal cannabis could bring the country some 3.4 billion euros ($3.85 billion) in tax revenue.
What’s more, it would save roughly 1.3 billion euros annually for the judicial system and create 27,000 new jobs.
Now the coalition pact is official. Leaders of Germany’s incoming governing parties announced on Wednesday that they have a formal agreement to legalize marijuana.
"We are introducing the controlled supply of cannabis to adults for consumption in licensed stores,” the parties said in a new 118-page agreement, according to a translation, reported Marijuana Moment.
Considering Germany's population of nearly 84 million, legalization would create one huge cannabis market.
Finn Hänsel, founder and managing director of the Sanity Group, a Berlin-based cannabis start-up, imagines setting up and operating a system of licensed specialist stores.
Hänsel said the company has been advocating a more liberal and responsible approach to cannabis for many years and is convinced that a controlled market is the only way forward to curb illicit markets, ensure quality and protect the consumer through expert education and advice.
“The parties of the new German government have now laid the foundation, but the details still need to be worked out: Clear legislation and regulation are needed to define, among other things, the conditions for cultivation, processing, logistics and licensed distribution. We can learn from the experience of Canada or the USA. We are clearly in favor of the revenue from a potential cannabis tax flowing into youth protection as well as target group-specific educational measures,” Hänsel said.
At the same time, the 39-year-old would like the planned legalization to also uniformly regulate the handling of CBD products in Germany: “Here, we have had an unclear legal situation for all parties involved for years - this topic should now also be addressed in a future law."
Fabian Friede, co-founder and CEO of Sanity Group's pharmaceutical subsidiary, Vayamed, said they have been advocating for a separation of medical and recreational cannabis.
“The supply of patients with medical cannabis must not be restricted or jeopardized by a future controlled dispensing to adults for consumption purposes. We advocate that the medical cannabis market be clearly separated from the recreational cannabis market, which can be achieved through licensed stores,” Friede said.
In addition, Friede would like to see a simplified prescription of medical cannabis: “The authorization requirement of health insurance companies must be abolished to make it easier for patients to access therapy with medical cannabis".
"When it comes to alcohol and nicotine prevention, we rely on increased education with a special focus on children, adolescents, and pregnant women,” the agreement states, according to Marijuana Moment.
Photo Via El Planteo.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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