Germany moves closer to legalizing adult cannabis use

The German government's most likely next alliance is preparing a deal to legalize adult cannabis use, the clearest sign that the long-awaited growth of the European legal cannabis market is picking up steam, announced the BNN Bloomberg. The recreational legalization in Germany could boost the European market to move 3,2 billion euros by 2025, according to projections by Prohibition Partners.

Social Democrats, Greens and Free Democrats will reportedly be working out the details, including the conditions under which the sale and recreational use of cannabis would be allowed and regulated in Germany, according to people close to the negotiations, who preferred not be identified as these discussions are still private. Politicians are part of wider negotiations on forming a new government, with the three parties aiming in early December for the inauguration of a new government under the Social Democrat Olaf Scholz.

No final decisions on cannabis have been made yet, and the outcome could change, but a deal on recreational legalization wouldn't be too surprising in Germany. The alliance's likely partners have been more open to the idea than Angela Merkel's Christian Democrats, who have been in power since 2005.

Legalization would give a boost to a European market that is expected to move 3,2 billion euros by 2025, up from 403 million euros at the end of this year, according to the European Cannabis Report by Prohibition Partners. The move could generate new tax revenue and be a boon for medical cannabis companies in the US and Canada, as well as an emerging German industry, which includes companies such as Cantourage GmbH and Synbiotic SE.

Many cannabis producers have already entered Europe through medicinal companies and have positioned themselves to benefit from a larger market, namely recreational. Curaleaf Holdings Inc., the largest company in the United States, purchased, earlier this year, Emmac Life Sciences Ltd., positioning it to capitalize on the European market. Curaleaf CEO Boris Jordan also has a stake in Frankfurt-based startup Algea Care.

Tilray, which has facilities in Portugal, claims to aim to export cannabis to Europe and has promoted its merger with the American company Aphria. Other Canadian companies, such as Aurora and Canopy Growth, also currently supply the German medical market.

The public opinion of the Germans in relation to a possible legalization has been increasingly favorable in recent years. In a late-October survey by the German Hemp Association, 49 percent of respondents said they were in favor of legalizing cannabis, with sale in specialty stores such as the US and Canada, compared with 46 percent, who still oppose.