Jay Zarkowski, Founding Partner, Kanna Advisors
Canna Advisors, Project Manager, Brian Hart
Will Other European Countries Start Accepting Cannabis Legalization?
There are many countries in Europe that currently have medical marijuana programs, and as we follow the developments within the industry, we can see that this trend continues and eventually leads to recreational sales. In March 2022, France approved the cultivation of medical cannabis, and in June 2022 it was legalized for people to buy cannabis seeds. In Italy, grassroots efforts to legalize recreational cannabis remain persistent. This was demonstrated in February 2022 when the Italian Constitutional Court abandoned a referendum backed by more than 630,000 signatures. Unfortunately, it shows how cannabis has reached the higher levels of government. Looking at Germany, France and Italy, these are the top three most populous countries in the EU, accounting for more than 40% of the block’s population. As the three most populous and largest contributors to GDP, they show a continuing trend towards legalization of recreation, led by Germany.
What is the significance of Germany being the first European country to legalize the sale of recreational cannabis?
That is very important. When Britain left the EU with Brexit, the EU lost an important leader. Germany hesitates to announce its position as a new leader and embraces the EU spirit based on multilateralism. But if you look at Germany’s EU performance, you can see how powerful Germany is. As the most populous country, Germany has 96 out of 705 members of the European Parliament (MEP). Meanwhile, the 96 parliamentarians range from liberal to conservative groups and work with other political parties in European countries. In order to form a coalition government, it is important that the countries with the highest MEPs have entertainment cannabis. As cannabis becomes legal, people tend to see it as not a big deal, and critics tend to dilute their fierce opposition. This attitude can permeate the entire EU Parliament as more and more countries experience the legalization of cannabis and eventually support full recreation.
In addition, we need to look at the European debt crisis. This is a tremendous topic to cover, but in a nutshell, Greece ran out of money and it was the Germans who paid the most to rescue them. During negotiations with Greece’s austerity policy, it was the Germans who decided on the program and launched the so-called “Salami approach” in which Germany freed the interval between cash injections as long as Greece responded to austerity reforms. This was when Britain was in the EU. Imagine how many economic statements Germany is making now. Money and power are inextricably linked.
Will the imminent legalization of German entertainment cannabis provide Americans with greater opportunities for travel, trade and investment?
Trade and investment opportunities are more important than travel. Since Americans take two weeks off, it is unlikely that Germany’s legalization of cannabis will increase tourism-based American travel. Especially with cheap flights to Amsterdam, the Netherlands maintains its reputation as a paradise for cannabis lovers (eating Kibering while there). However, trade and investment are big topics, and by law this affects business trips.
On July 9th and 10th, Lennart Tacke hosted the first International Hamburg Cannabis Conference (HamCan). Canna Advisors attended and Brian had the opportunity to speak at one of the events and talk to Lennart. In this conversation, Renato pointed out that Hamburg has a rich history as a trading city. We only need to see the roots of Hamburg, which dates back to the Hanseatic League 800 years ago. As Germany legalizes cannabis, Hamburg’s geographical location and heritage make sense that it will become a trading port for future cannabis imports and exports. Once the United States establishes a federal cannabis framework, trade between the two across the Atlantic may offer a favorable opportunity.
This all depends on the current German coalition (Ampel) government enacting legislation on cannabis later this year. Specifically, what is permitted and what is not permitted regarding foreign investment and trade. However, because Germans are known for their practicalism, recreational cannabis is becoming legal in the first place, and the government is confident that it wants to create a fair and healthy cannabis economy, part of which is the investment system. ,trade.
How will the Cannabis Control Law continue to be rolled out in the United States?
Cannabis continues to make progress in the United States. Currently, in the southern states, there may be license rounds in Florida and Mississippi in the first half of 2022, license rounds in Alabama in the second half of 2022, and more license rounds in Florida. There is a big medical movement. And even Texas. This is important because all four states voted for the Republican Party in the last election, and three of these states are known for conservatism. As socially conservative states like Alabama and Mississippi open their doors to medical cannabis, their attitudes continue to change, reflecting that cannabis must not be illegal. It’s no exaggeration to say.
Predicting the future is always difficult, but Brian Hart believes in health care, and perhaps the federal legalization of recreational cannabis will be part of the election conversation by 2024, with the Senate voting for it by 2025. prize. One main reason is cannabis, which makes sense as more and more liberal and conservative states continue to be medically and entertainingly legal. In addition, Democrats are concerned that President Biden is not very enthusiastic on the base. Having cannabis as part of a conversation may be a wise move to boost Democratic turnout and shake independence and Republican voters.
