The Current State of Cannabis Reform and Marijuana Policy in European Union Nations

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I recently traveled to Amsterdam to participate in an expert seminar on European cannabis and drug policy. The seminar covered various topics, including a thought experiment on where European Union (EU) cannabis reform was headed in the next five to ten years. While most seminar participants do not see major commercial reforms occurring for at least ten years—if at all—there are reasons to be optimistic about the reforms currently taking place in the EU. (For this article, I consider Switzerland part of the EU due to its participation in the Schengen Agreement and Convention, which, along with the 2004 EU Framework Decision (not applicable to Switzerland), guide EU cannabis policy.)

Before we discuss cannabis reforms currently taking place in the EU, readers should understand that EU nations face steeper hurdles to legalizing commercial marijuana programs (“Adult-Use Programs”) than other nations around the world. While around 170 countries are a party to the three international drug conventions (the “Drug Treaties”), the legalization of Adult-Use Programs (which are prohibited under the Drug Treaties) in the EU is also subject to the Schengen Agreement and 2004 EU Framework Decision, which collectively provide enforceable restrictions and, more importantly, possible financial penalties for countries that move forward with an Adult-Use Program. For a discussion on the interplay between these agreements and the Drug Treaties and a potential way forward, please see Hein van Kempen, Fedorova, Cannabis Regulation Through the “Without Right” Clause in Article 2(1) of EU Framework Decision 2004/757/jha on Illicit Drug Trafficking.

Unless, or until, a country is willing to test out the theory discussed in this article, we will likely not see an EU country move forward with an Adult-Use Program for some time. Germany, Malta, and Luxembourg believed they could proceed with an Adult-Use Program, only to realize that the Drug Treaties and EU law made it riskier than anticipated.

Cannabis Reform in Germany

Germany started with lofty goals for a full commercial cannabis program, which quickly fizzled out, turning into quasi-legalization rather than full legalization. Germany implemented a two-phased approach to its quasi-legalization. I refer to it as “quasi-legalization” because Germany did not legalize a commercial market, so there are no retail stores where a person can buy legal marijuana. The first phase included legalizing personal possession, homegrow, and cultivation clubs, as well as implementing some social equity provisions. The second phase, which may or may not become a reality, is establishing pilot programs in select locations to research the societal benefits of full legalization, which is similar to what Switzerland and the Netherlands have implemented.

Phase I

Since April 1, 2024, adults in Germany can legally possess up to 25 grams of cannabis and grow up to three plants for personal use. As of July 1, 2024, adults can join “social clubs” where they are permitted to purchase up to 25 grams of cannabis—capped at 50 grams per month. These “social clubs” are strictly for the cultivation of cannabis, and social use is not permitted. With the prohibition on retail, Germany’s grey market will likely thrive. Tourists and others who cannot or do not want to register with a social club will need to source their marijuana from somewhere else. This could be problematic since the governing coalition pushed its quasi-legalization, in part, to curb the black market influence on Germans seeking to acquire marijuana.

Phase II

The current governing coalition has until the next elections to attempt to implement Phase II of its quasi-legalization plan: Commercially Regulated Pilot Programs. There are concerns that the bill to legalize Phase I did not account for Phase II. As such, additional legislation may be needed to realize this phase, which could be problematic since passing the first phase ran into many hurdles and barely succeeded.

Assuming Phase II moves forward, the pilot programs would run in select cities and allow registered citizens to buy legal marijuana from retail (or pharmacy) locations. This trial would be similar to the pilot programs currently operated in the Netherlands and Switzerland. After five years, the government would analyze the data and determine whether moving forward with full adult-use legalization would be best for the health and welfare of Germany. For this to occur, two things must happen once the pilot program ends. First, the research results need to show that legalization benefits society more than prohibition or quasi-legalization. Second, the governing coalition of Germany at that time will need to be pro-cannabis liberalization. If either or both of those outcomes are not realized, then the status quo will likely remain (unless a future government can successfully roll back quasi-legalization).

Cannabis Cooperatives in Malta

In 2021, the island nation of Malta took a historic step and became the first country to legalize a cooperative approach to marijuana commercialization for adults. The regulatory framework was not adopted until 2023. Under the law, consumers can possess up to seven grams of marijuana in public and grow four plants at home. Like Germany, a commercial retail market is not permitted, and consumers must acquire marijuana from regulated membership-based non-profit cooperatives. These marijuana cooperative associations began operating in January of 2024, with 14 associations approved to operate (five are distributing cannabis to their members, three have commenced operations, and six are setting up cultivation sites).

Cannabis for Personal Use in Luxembourg

Luxembourg legalized personal possession and home cultivation of up to four marijuana plants in 2023. The consumption of marijuana in public and retail sale of marijuana remains prohibited. Despite a recent change in government, marijuana maintains its current status, but another evaluation will occur in 2026.

Netherlands Cannabis Toleration Policy

Despite a widespread belief that the Netherlands has legalized marijuana, it has not. Instead, it promotes a policy of tolerance, allowing the sale and social use of marijuana to occur in licensed coffee shops and cafes. Under the policy of tolerance, individuals can possess up to five grams of marijuana and cultivate up to five cannabis plants for personal use. Consumption is permitted in designated cafes or private spaces. Licensed coffee shops are permitted to sell up to five grams of marijuana per person per day. These shops must comply with strict regulations and are prohibited from cultivating cannabis (leading to the immaculate conception issue with the marijuana they sell).

In 2017, in an attempt to legitimize the coffee shop model and protect consumers through a regulated and tracked supply chain of marijuana, the Netherlands passed legislation permitting a pilot program that allows for the legal cultivation and sale of marijuana at registered coffee shops. Numerous setbacks have marred the launch, but the program finally officially commenced in June 2024.

For three months, the coffee shops participating in the pilot program can sell both tolerated and regulated products. After three months, participating coffee shops should have sufficient supply to sell only regulated products, and by September 16, 2024, regulated coffee shops will only be permitted to sell regulated marijuana. This experiment is expected to last four years and, like Germany, the implementation of a fully commercialized regulated system will be dictated by the study results and the government in charge of the Netherlands at that time.

Switzerland Cannabis Pilot Programs

In 2021, Switzerland amended its laws to allow pilot trials to dispense marijuana for recreational purposes. The pilot program allows for the sale of marijuana and marijuana products in pharmacies, cannabis social clubs, and non-profit stores. The pilot program aims to compare and analyze the different distribution systems and show which regulatory models the Swiss accept. Currently, the authorized pilot trials are: Zurich – Canton of Zurich; Cann-L – City of Lausanne; Grashaus Projects – Canton of Basel-Landschaft; La Cannabinothèque – Canton of Geneva; SCRIPT – Cities of Bern, Biel, Lucerne; WeedCare – Canton of Basel-Stadt; and ZüriCan – City of Zurich. The first results of these trials were published in March 2024 from the City of Zurich. The trial is set to run for ten years, at which point the implementation of a fully commercialized regulated system will be dictated by the study results and the government in charge of Switzerland at that time.

Cannabis and Intoxicating Hemp Products in the Czech Republic

The Czech Republic is the next EU nation hoping to break the commercialization barrier and pass legislation legalizing the commercial sale of marijuana. Currently, Czechia is working on three paths forward for legalizing cannabis:

  1. A path similar to Germany that will decriminalize marijuana

  1. A path that would see a commercially regulated market similar to what you have in Canada

  1. A new path that would redefine certain intoxicating substances as “Psychomodulatory substances,” including Kratom, hemp (and specifically, HHC), and hemp products that contain no more than 1% THC

Psychomodulatory Substances Path

The Psychomodulatory substances path is not as self-explanatory as the other two options but has unprecedented political support within Czechia. The government sees this as a novel way to regulate psychoactive substances widely used by the population. The idea here is that since people will use these substances anyway, the government should regulate them to help ensure a safe supply for the people of Czechia and reduce the effects of the black market. Should this bill pass, Czechia would become the first country in Europe to legalize the commercial sale of intoxicating hemp products.

Regulated Cannabis Market Path

The Czech Republic cannabis legalization bill would allow for the sale of marijuana through retail outlets and permit the self-growing of marijuana in people’s homes. Earlier this year, the Czech government published a draft version of its marijuana legalization bill, and to the surprise of many, it omitted a full commercial market. While many were upset about this, it later came out that this was a ploy to put pressure on the bill’s opponents and show the vast support within Czechia for a full commercial market. This month, the country’s drug coordinator and architect of the legalization bill and psych modulatory substances bill, Jindřich Vobořil, suddenly announced that he would be stepping down from his post in August, leaving uncertainty as to how his departure will affect the chances of either of these bills becoming law.

Like Malta, Luxembourg, and Germany, the Czech Republic may resign to the fact that a full commercial program would place them at odds with the Drug Treaties and pose a threat of sanctions within the EU. As such, it is expected by many in the international drug policy community that Czechia will ultimately choose what is becoming the EU model for legalization—decriminalization with cultivation collectives and home grows.

What’s Next for EU Cannabis Reform?

With unique obstacles preventing EU nations from moving forward with the full commercialization of marijuana, it is unclear when, or even whether, any EU nation will succeed in legalizing a full commercial program. All eyes are currently on the Czech Republic to see whether it can be the first. What is clear is that the liberalization of marijuana is sweeping the world, and it is only a matter of time before regulation, rather than prohibition, becomes the standard model for marijuana.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Vicente LLP

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