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German government sets out plans for €60 billion ‘future’ fund

Germany's new government is planning to earmark 60 billion euros to fund 'future investment' including its plans to tackle climate change, Finance Minister Christian Lindner said on Friday.

Finance Minister Christian Lindner
Finance Minister Christian Lindner (FDP) sets out the coalition's plans to invest heavily in the transition to renewable energy on Friday, December 10th. Photo: picture alliance/dpa/POOL AP | Michael Sohn

The funds will be taken from debts approved to help the government tackle the coronavirus pandemic but which “have not been used”, said Lindner in his first major announcement since taking office on Wednesday.

The government had signed off a plan to borrow €240 billion in 2021 to finance measures to lessen the impact of the pandemic on businesses but will now only need 180 billion euros.

Germany’s coalition government of the Social Democrats, Greens and liberal FDP has pledged that the expansion of sustainable energy will be “drastically accelerated and all hurdles and obstacles will be removed”.

They plan to phase out coal and source 80 percent of the country’s energy from renewable sources by 2030, with the aim of achieving carbon neutrality 

With an eye on the powerful automotive industry, the parties have also resolved to put 15 million fully electric cars on the road by 2030, up from just over 500,000 currently.

Lindner said the new funds would also be used to invest in the “digitalisation” of the German economy.

During the coalition negotiations, the centre-left SPD and the Greens had initially proposed more flexibility on fiscal policy.

But Lindner’s pro-business FDP succeeded in pushing for a tougher stance on public finances.

The coalition has promised a return to the so-called debt brake — a rule enshrined in the constitution that normally limits Germany’s public deficit to 0.35 percent of overall annual economic output — by 2023.

The debt brake was lifted to help fight the coronavirus pandemic.

“Only by ensuring stable finances can we meet the requirement of fairness between the generations,” Lindner said on Friday.

READ ALSO: KEY POINTS: Germany’s next government unveils coalition pact

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KEY POINTS: What to know about Germany’s partial legalisation of cannabis

Cannabis is to be partially freed for consumption in Germany starting April 1st. Why is this such a landmark legal reform, and what new rules and restrictions are in place?

KEY POINTS: What to know about Germany’s partial legalisation of cannabis

Why is this a historic moment?

The law decriminalises cannabis and legally recognises it as a non-narcotic. Germany will become the third European country, after Malta and Luxembourg, to legalise adult recreational use. And the law makes it one of the most liberal among developed economies. 

READ ALSO: Germany gives green light to partially legalise cannabis from April

Only Canada, whose law allows individuals to buy from licensed retailers and carry up to 30 grams of cannabis, is more permissive.  

The cannabis bill also lowers the barrier for doctors to prescribe medical marijuana to patients. It will now be considered a normal prescription instead of a narcotic. Previously patients needed to have a chronic illness or be seriously ill to get a prescription. 

What is the timeline for legalisation?

Beginning April 1st, adults will be allowed to carry up to 25 grams of cannabis for recreational use. They can also keep up to 50 grams of marijuana at home and grow up to three plants for personal use. Note that is three plants per person, not per household. 

On July 1st, adults can begin joining “cannabis social clubs” where they can receive monthly allotments of marijuana. And in the future, the bill lays out a plan to test out municipal five-year pilot programs for state-controlled cannabis to be sold in licensed shops. 

Can cannabis be purchased in Germany after April 1st?

There is no way to buy cannabis directly, as it won’t be available for general purchase in a store. Instead, you can grow the plant yourself or join a cannabis club this summer. The cannabis clubs can begin growing cannabis on July 1st. 

What will cannabis clubs do?

Cannabis clubs can have up to 500 members. Clubs can give members 25 grams of cannabis per day and up to 50 grams of the plant per month. For members under 22 years old, clubs can allot up to 30 grams of cannabis per month. 

For cultivation club members between 18 and 21-year-olds the level of THC -the substance in cannabis that gives you the “high” – will be limited to help minimise the impact of marijuana use on developing brains. 

Cannabis in Dresden

Martin Reuter, head of the Sanaleo shop for CBD products in Dresden’s Neustadt, holds a cannabis flower for sale in his hands. Photo: picture alliance/dpa | Robert Michael

Clubs cannot sell weed to their members, but they are allowed to charge membership fees. Under the law, all excess production must be destroyed. 

Cannabis social clubs can set their own requirements for membership so long as the minimum age of membership is 18 and members can prove German residency. The law also gives states the ability to limit the number of clubs according to population density. 

Can you consume cannabis in public?

Yes, but there are some parameters. You cannot consume weed within 100 metres of schools, sports facilities or around minors. You can also only smoke cannabis in public between the hours of 8pm and 7am. 

How does the public feel about the law?

Germans remain divided on the new legislation with 47 percent in favour of the plans and 42 percent against the legalisation, according to a YouGov poll published on Friday March 22nd.

The law was also met with sharp criticism from doctors, legal professionals and representatives from some of the nation’s 16 federal states. The conservative CDU and CSU parties expressed consistent opposition to the bill on the Bundestag floor. 

READ ALSO: Why is Germany’s cannabis draft law so controversial?

What happens if you break the rules?

Minors who are caught consuming cannabis will be required to take part in prevention programmes. It is unclear what rules will apply to cannabis in road traffic, shipping and air traffic because it is still under review by expert committees.  

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