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Germany gives controversial green light to cannabis

Germany on Monday became the biggest EU country to legalise recreational cannabis, despite fierce objections from opposition politicians and medical associations.

Germany gives controversial green light to cannabis
A protester in Berlin against criminalisation of Cannabis poses with a sign. Germany's new law decriminalising cannabis is now partially in force, with the next phase set to come July 1st. Photo: AFP / Tobias Schwarz

Under the first step in the much-debated new law, adults over 18 are now allowed to carry 25 grams of dried cannabis and cultivate up to three marijuana plants at home.

The changes leave Germany with some of the most liberal cannabis laws in Europe, alongside Malta and Luxembourg, which legalised recreational use in 2021 and 2023, respectively. The Netherlands, known for its permissive attitude to the drug, has in recent years taken a stricter approach to counter cannabis tourism.

As the law took effect at midnight, hundreds of people cheered by Berlin’s iconic Brandenburg Gate, many of them by lighting up joints in what one participant, a very happy 25-year-old Niyazi, called “a bit of extra freedom”.

As the next step in the legal reform, from July 1st it will be possible to legally obtain weed through “cannabis clubs” in the country. These regulated associations will be allowed to have up to 500 members each, and will be able to distribute up to 50 grams of cannabis per person per month.

Until then, “consumers must not tell the police where they bought their cannabis” in the event of a street check, Georg Wurth, director of the German Cannabis Association, told AFP.

‘Disaster’

Initial plans for cannabis to be sold via licensed shops have been ditched due to EU opposition, though a second law is in the pipeline to trial the sale of the drug in shops in pilot regions. The German government, a three-way coalition led by Chancellor Olaf Scholz’s Social Democrats, argues that legalisation will help contain the growing black market for the popular substance.

But health groups have raised concerns that legalisation could lead to an increase in use among young people, who face the highest health risks. Cannabis use among young people can affect the development of the central nervous system, leading to an increased risk of developing psychosis and schizophrenia, experts have warned.

“From our point of view, the law as it is written is a disaster,” Katja Seidel, a therapist at a cannabis addiction centre for young people in Berlin, told AFP.

Even Health Minister Karl Lauterbach, a doctor, has said that cannabis consumption can be “dangerous”, especially for young people. The government has promised a widespread information campaign to raise awareness of the risks and to boost support programmes. It has also stressed that cannabis will remain banned for under-18s and within 100 metres of schools, kindergartens and playgrounds.

‘Responsible’

The law has also led to criticism from police, who fear it will be difficult to enforce.

“From April 1, our colleagues will find themselves in situations of conflict with citizens, as uncertainty reigns on both sides,” said Alexander Poitz, vice-president of the GdP police union.

Another potential issue is that the law will retroactively declare an amnesty for cannabis-related offences, creating an administrative headache for the legal system. According to the German Judges’ Association, the pardon could apply to more than 200,000 cases that would need to be checked and processed.

Conservative opposition leader Friedrich Merz has said he would “immediately” repeal the law if he and his party formed a government following nationwide elections in 2025. But Finance Minister Christian Lindner, from the liberal FDP, said legalisation was a “responsible” move that was better than “directing people to the black market”.

The new law “will not lead to chaos”, Lindner told public broadcaster ARD.

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

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.

READ ALSO: Can Germany revive its struggling economy?

“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.”

READ ALSO: Which German companies are planning to cut jobs?

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.

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