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UPDATE: German ministers present draft law on cannabis legalisation

After a long discussion, Health Minister Karl Lauterbach and Agriculture Minister Cem Özdemir laid out plans Wednesday for a partial legalisation of marijuana to take effect by the end of the year.

Published: 12 April 2023 10:47 CEST
Updated: 12 April 2023 13:31 CEST

Agriculture Minister Cem Özdemir and Health Minister karl Lauterbach present plans for a partial legalisation of cannabis in Germany. Photo: picture alliance/dpa | Britta Pedersen

The federal traffic light parties of the Social Democrats (SPD), liberal Free Democrats (FDP) and Greens originally committed to legalising marijuana in their coalition agreement shortly after the 2021 election. It’s been one of the most hotly anticipated pieces of upcoming legislation ever since.

The SPD’s Lauterbach and Özdemir of the Greens laid out the government’s exact plans for legalisation Wednesday around midday. It doesn’t, as originally envisioned, involve full cannabis legalisation that would see weed on sale in “coffee shops” similar to those found in Amsterdam, or in pharmacies.

The ministers said legalisation will be softer, at least to start with, following discussions with the European Union, amidst concerns full legalisation could run afoul of EU law.

The Bundestag will now have to approve the draft law. Parliamentarians may make some amendments over the next few months – but the government’s current legalisation plans include these main points:

Individual people can carry up to 25 grams of cannabis for their own consumption without any legal consequences. More than this could be subject to criminal penalties.
Each individual person can have up to three cannabis plants to cultivate themselves. This marks a change from the original draft, which envisioned allowing three plants per family rather than three plants per person.
Members of non-profit social clubs will be allowed to buy up to 25 grams of cannabis at a time from the club, and up to a maximum of 50 grams a month. Members will also be able to smoke their own cannabis there. These cannabis social clubs are similar to ones found in Malta and Spain. Non-members will not be able to smoke there.
The draft law plans a highly government-controlled and regulated supply chain. Controlled sales will happen in licenced shops, most likely on the premises of scientifically-monitored regional projects. It’s a bit like having to buy beer directly from a monitored brewer, rather than simply at a corner shop.
Cannabis purchase, possession, or consumption will remain restricted to people 18 years of age and over. Cannabis consumption also won’t be possible near places with a lot of children, such as kitas or schools.

READ ALSO: German word of the day: Bubatz

Parliamentarians with all three traffic light parties support legalisation, with Kristine Lütke, the FDP’s drug policy spokeswoman tweeting “Finally!”

Green health specialist Kirsten Kappert-Gonther called it “a belated Easter egg in the hemp nest.”

Ein verspätetes Osterei liegt im Hanfnest!🥦 https://t.co/o3WGbmrBtY

— Kirsten Kappert-Gonther (@KirstenKappert) April 11, 2023

The opposition conservative Christian Democrats are opposed, saying that the proposed legislation will “cause considerable damage to children and young people.”

Lauterbach says his ministry has had “good progress” with EU officials on the planned law, and that the government’s partial legalisation has already been discussed with the EU.

It’s unclear yet though, what might happen if the government pushes ahead with further plans to loosen marijuana rules, such as by making it available in pharmacies.

The law is expected to pass before summer and take effect either around the end of the year or at the beginning of 2024.

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Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.