George Bernard Shaw once said, “Progress is impossible without change, and those who cannot change their minds cannot change anything.”
When it comes to reforming stagnant marijuana attitudes and laws, institutional change needs to keep pace with shifts in society, which in 2023 is rejecting decades of stigma and wants justice for the failed War on Drugs. These societal changes are happening on the new and old continent as well.
In Europe, for starters, the second most populous country, Germany, is set to legalize marijuana in 2024 with the final vote scheduled for spring. The Netherlands recently launched legal marijuana as part of a four-year trial, while two recreational cannabis pilot projects in Switzerland reached the sales phase in December.
France recently took a step toward the generalization of medical marijuana and Ukraine’s unicameral parliament, the Verkhovna Rada’ passed a bill last week on the legalization of medical cannabis. Though the bill was approved in a 248-16 vote, the Batkivshchyna (Fatherland) parliamentary faction obstructed final approval. Despite President Volodymyr Zelenskyy's endorsement of medical marijuana, MP Yaroslav Zalizniak reported on Telegram that the bill's progress is on hold until mid-January. Even with the obstruction, opposition and postponement, the passing of the bill marks a huge milestone for this conservative country.
This April, the Czech Republic took a step toward legalizing cannabis sales to deal with addiction problems. In October, Malta, which became the first country in Europe to legalize recreational cannabis two years ago, issued Europe’s first-ever marijuana licenses permitting non-profits to grow and distribute marijuana.
What kind of progress is expected in 2024?
To find out, Benzinga reached out to industry experts such as Niklas Kouparanis, co-founder and CEO of a Frankfurt-based medical cannabis holding company the Bloomwell Group; Raj Grover, president and CEO of a Canadian cannabis retailer High Tide HITI and Lewis Koski, chief strategy officer of a provider of cannabis regulatory technology systems Metrc.
Courtesy photos
All Eyes On Germany
“The fact that Germany is preparing to pass its Cannabis Act, which will decriminalize and reclassify cannabis as a non-narcotic, is a huge milestone. The law will be passed at the beginning of 2024 by the Bundestag, but all the legislative legwork took place in 2023,” Kouparanis told Benzinga.
If everything goes according to the plan, starting April 1, cannabis will no longer be considered a narcotic in Germany. The number of medical marijuana patients will rapidly increase as it can be prescribed as
regular Rx medication.
Kouparanis added that not only costs will decrease, but that the patients will be able to use only prescriptions.
“Our country of 83 million, which currently has between 200,000-300,000 medical patients, will see its number of medical cannabis patients multiply between seven and ten times, into the millions,” Kouparanis pointed out.
Lewis Koski added that this move will be followed by Germany's “decriminalization/social club bill early next year, which may be followed by another piece of legislation aimed at approving commercialized regional model projects.”
Raj Grover noted that "the most influential European country has recognized that legal cannabis sales are the best way to combat the illicit market is a game changer.”
Kouparanis agreed that Germany’s reform would be a catalyst for more progressive cannabis policies across all of Europe.
How To Enter The Market
With so many reforms expected it certainly seems like now is the right moment for cannabis companies to secure their place in the European market before the competition gets there. The question is - what is the right approach?
“Companies looking to make the move should research the peculiarities (like the pharmaceutical regulatory environment, and local regulatory requirements in every country) of the specific European market they wish to enter,” Grover said. “If the regulatory environment makes sense for your specific business model, then it is a good moment to establish your own supply chain for the future.”
Koski advised businesses to do their homework and learn about the European market, build a network and prioritize the most important things that should be put in the laws, while also identifying potential partners in the region. “There are several cannabis business associations that can help get you started with all of these suggestions, which can help affordably build a plan for timely engagement in Europe.”
Kouparanis believes that Germany is headed to become the biggest medical marijuana market in the world by 2024, so “investors should look to Germany, where there are opportunities to do business with experienced companies that are already engaged with patients and are utilizing data on medical cannabis supply and demand.”
Grover also suggested that investors and companies from other countries should keep an eye on the next wave of reforms, which will likely happen in the Netherlands, the UK, Poland, Spain, Portugal, Italy, France, the Czech Republic and Switzerland.
Scientific Research Is Speeding Up But Not Quickly Enough
The stigma around marijuana is more prevalent in Europe than in North America, despite the growing medical marijuana programs, noted Koski. For example, in Germany only a small percentage of doctors recommend marijuana.
“Scientific research showing positive health outcomes for patients could help doctors get more comfortable recommending cannabis, but I am not sure that would lead to widespread support for the plant,” Koski said. “Governments successfully implementing larger medical programs or regional adult use model projects at scale in tandem with additional scientific research are much more likely to reduce the traditional concerns opponents have, and build more support for safe use of cannabis.”
Grover added that even though research into the medical benefits of marijuana has been helpful, it’s not quite enough. “Cultural attitudes, historical perspectives, economics, and the experiences of other countries also influence how Europe approaches cannabis,” he said. “Scientific research is necessary, but a more comprehensive approach would also consider social, economic, and health-related factors as essential to shaping policy.”
Kouparanis added that the stigma of marijuana still hovers. “I think many physicians' reservations regarding prescribing medical cannabis have been caused by decades of stigmatization, not by a lack of evidence. We are continuously gathering more and more research-based evidence on the potential benefits of medical cannabis.”
Photo: Courtesy of Roman Kraft on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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