Medical cannabis is taking over Europe, as well as efforts to decriminalize cannabis in numerous countries and at local levels. In a pattern similar to what took place in the U.S., European nations are legalizing cannabis for medical or recreational purposes in a patchwork of new laws.

According to a May 16 press release from Victoria, Australia-based Biortica Agrimed, 21 out of 27 member states of the European Union (EU) legalized medical cannabis.

“The EU situation with respect to legalisation can best be described as fluid, but evolving positively,“ said Tom Varga, CEO of Biortica Agrimed. Biortica Agrimed is a vertically-integrated B2B company  preparing to list on the Australian Securities Exchange with an IPO.

The 27 EU countries are Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Out of those, 21 countries—Austria, Belgium, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, and Spain—implemented laws to allow for the medical use of cannabis.

Out of those countries, the potential market in Germany is among the most exciting and where investors are circling the most at the current moment.

“Whilst EU law prohibits the commercial sale of cannabis, many countries are taking a more mature approach, and legalising, initially medicinal, and ultimately personal use, with Germany in the lead. 21 out of the 27 EU member states have legalised use of medicinal cannabis,” he said, “and 13 countries have either legalised or decriminalised its personal use.”

Countries like Spain have decriminalized cannabis, while Georgia, Germany, Luxembourg, and Malta have taken steps to legalize adult-use. Countries like Portugal have gone even further by decriminalizing all drugs. Dozens more cities in the EU decriminalized cannabis at the city level.

Part of the purpose of Biortica Agrimed’s report is to support the argument that it’s due time Australia takes note of the potential Down Under. Australia legalized medical marijuana in 2016. According to Therapeutic Goods Administration (TGA) data, the number of patient approvals for medical cannabis increased sharply. In Australia, doctors can prescribe medicinal cannabis with the approval from the TGA and the relevant State or Territory’s Health Department.

“The EU comprises world class nations, and Australia should take any learnings that we can from the EU.” he said, “We have the benefit, and indeed the privilege, to view how legislative frameworks have been built over-seas, what’s worked and working, and what the Australian industry and legislators should avoid. Australia really can do better.”

“We look forward to continuing to share our global industry research with the Australian industry, our legislators and regulators, to build an industry that we can all be proud of, an industry that puts patient care, safety and outcomes to the fore, ” said Varga.

Cannabis Prevalence in Europe

Cannabis remains the most popular substance used in Europe according to the most recent counts by European data monitors.

The European Monitoring Centre for Drugs and Drug Addiction’s (EMCDDA) report, entitled “Cannabis—the current situation in Europe (European Drug Report 2023),” describes cannabis as “by far the most commonly consumed illicit drug in Europe.”

The report cites national surveys which show that 8% of European adults (out of approximately 22.6 million people between 15 and 64 years of age) have used cannabis within the last year. An estimated 1.3% of adults (approximately 3.7 million people) are described as “daily” or “almost daily” consumers.

With the popularity of cannabis continuing to grow, the report notes that this often leads to consumer “problems.” “There remains, however, a need to understand better the kinds of problems experienced by cannabis users, as well as the referral pathways and treatment options available for those with cannabis-related problems,” the report stated.

Germany’s legislation to legalize cannabis took effect on April 1. German lawmakers gave final approval to a recreational weed legalization plan known as CanG recently, making the country the largest in Europe to take the step.

In the German capital of Berlin, cannabis smokers gathered at the iconic Brandenberg Gate to smoke weed and celebrate their new freedoms. Other events were held throughout Europe’s most populous country, including one in front of the Cologne cathedral and others in the cities of Hamburg, Regensburg, and Dortmund.

The patchwork of laws unfolding in the EU show how medical and adult-use cannabis are popular on a global scale, and what Australia could learn from European countries.

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It’s widely accepted that cannabis use in adolescence, while the brain is still developing, can lead to adverse effects. Of course, studies on cannabis as a whole are still catching up, and there are an abundance of gaps that researchers are still attempting to fill in.

A recent investigation, published in the journal Psychopharmacology and performed by Portuguese researchers, attempts to close some of the gaps regarding adolescent cannabis use, looking specifically at the occasional use of cannabis among adolescent subjects.

The research ultimately confirmed that subjects who occasionally used cannabis exhibited no significant changes in cognitive functioning compared to their non-cannabis-using peers.

Exploring the Gaps in an Oft-Researched Topic

Researchers begin by breaking down some of the current barriers in cannabis research, specifically how cannabis interacts with our brains. Looking at the psychological, neurocognitive and brain changes during adolescence, researchers note that the adolescent changes in the endocannabinoid system, and its role with stress and anxiety regulation, “put adolescents at increased risk for emotional and anxiety disorders.”

Still, they recognize further investigations employing longitudinal research designs are needed to address inconsistent findings in literature.

“Most adolescents engage in infrequent cannabis use, with non-disordered cannabis use being four times more prevalent than instances of Cannabis Use Disorder,” authors note. “As such, it is important to examine the neurocognitive and psychological outcomes among adolescents who escalate to heavier cannabis consumption as well as those who do not.”

Researchers utilized archival data from a large longitudinal cohort from the IMAGEN study, with participants mostly characterized by a low-to-moderate frequency of cannabis use.

The study focused on whether preexisting differences in reward-related brain activity, psychopathology and cognitive functioning predict cannabis use initiation, if cannabis use leads to impairment of these levels of functioning and, if so, if the disrupted levels of functioning recover with abstinence.

Investigating Occasional Cannabis Use Effects in Adolescents

The dataset recruited participants at eight sites in England, Ireland, France and Germany. Participants were an average of 14 years old at the baseline measurement, 19 at the first follow-up and 22 at the second follow-up. Participants had to report no or low risk of alcohol use and nicotine dependence at the baseline. 

Those who had used a specific illicit substance more than twice during their lifetime or more than eight total uses of any illicit substances in their lifetime were excluded from the set, resulting in 1,946 eligible participants.

At each timepoint, participants completed a number of questionnaires to measure substance use, psychopathy and cognition. Researchers also used the Puberty Development Scale and a scale assessing family stresses on participants.

Participants completed a cognitive task where they were asked to respond as quickly as possible to targets by pressing a button. Participants could win two, 10 or no points depending on their results, and they were informed they would receive a candy for every five points they earned.

Researchers focused on brain responses during gain anticipation and reward feedback for successful and unsuccessful trials. They also performed statistical analyses to address if baseline characteristics predicted later cannabis use, matching those using cannabis at the first followup with non-users in four logistic regression analyses.

Low-Frequency Adolescent Cannabis Use: No Evidence of Cognitive Impairment 

Looking at the first question surrounding baseline predictors of cannabis use initiation at age 19, those participants with higher conduct problems scores and lower peer problems scores at age 14 were associated with a greater likelihood of using cannabis at 19. However, neither reward anticipation nor feedback processing predicted cannabis use at 19 years old.

When comparing participants who used cannabis to non-users, researchers noted that the cannabis-using group had higher scores at 14 and 19, along with higher hyperactivity/inattention scores at 19, but no statistically significant differences in cognitive function, psychopathology or brain activity.

“We did not find evidence of cognitive impairment in light CAN (cannabis users) neither before nor after cannabis use onset,” researchers state. “Indeed, it is suggested that despite the broad association that may exist between adolescent cannabis use and neurocognitive impairment, these effects appear to be minor and may not be clinically significant”

At 22, persistent cannabis use exhibited “significantly higher” conduct problems compared to the control group, but “due to the absence of significant differences in cognitive functioning and brain activity, we did not test the hypothesis concerning recovery with abstinence,” researchers note.

Authors note that a larger sample study could help to generate more robust statistical analyses and findings. They also state that a greater representation of heavy cannabis users would increase the generalization of findings, “even though the cannabis use patterns of our sample are comparable to those of previous works that have also found no group differences in reward-related brain activity.” 

Researchers underscore that these findings may only reflect the effects experienced by low-frequency cannabis users, not heavy users or those with cannabis use disorder.

“The current study’s design allowed an examination of potential preexisting differences in brain activity, cognitive functioning, and psychological symptoms in a developmental sample of adolescents who would engage in light cannabis use in the future,” authors conclude. 

“We found no evidence of preexisting individual differences in reward processing or specific cognitive domains,” they continue. “However, cannabis-naïve adolescents with conduct problems and who were more socially engaged with their peers seem to be at a higher risk of taking part in persistent cannabis use in the future. Additionally, using cannabis during adolescence may result in the development of hyperactivity and inattention symptoms.”

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Portugal approved the decriminalization of synthetic drugs, The Portugal News reports. Portugal has had the most liberal approach to all drugs across Europe for decades. The drug strategy, put in place in 2000 and enacted in July 2001, was initially created to reduce the HIV/AIDS toll stemming from intravenous drug use cases using a harm reduction model. (In 1999, Portugal had the highest rate of HIV amongst such drug users in the European Union.) Their policy included decriminalizing personal drug possession and would influence similar efforts in places such as Oregon. And it worked, at least at drastically reducing HIV rates. As The Washington Post reports, HIV transmission rates via syringes plummeted. 

However, while drugs are decriminalized for those who enjoy them, their policies maintain criminal penalties for drug trafficking. So basically, you can get in trouble if you supply, but not if you use. Anyone familiar with how drug culture works can understand that while the goal is admirable, this approach is far from perfect if the true goal is to protect the public’s health. People will always find a way to get drugs whether their suppliers get arrested or not. But what such suppliers are selling is changing. 

Synthetic drugs are artificially modified from naturally-occurring substances. For example, fentanyl is a synthetic opioid. The new law equates the legal approach to these substances with that of “classic drugs” like cannabis, heroin, and cocaine. The debate regarding synthetic drugs that led to their decriminalization centered on these new substances’ adverse effects on communities. While Portugal’s laws offered hope to harm reductionists worldwide, as The Washington Post notes, unfortunately, due to more recent and deadlier drugs, and other factors, the country still has drug problems. Drug use is apparently more visible on the streets than ever, and interest in offering help for substance use disorders seems to be dwindling. 

“At the end of the day, the police have their hands tied,” said António Leitão da Silva, chief of Municipal Police of Porto, adding the matter now is much like the years before decriminalization was implemented in 2000.

“Twenty-seven years later, it is necessary to change the current legal framework in order to cover this new and harsh reality,” social democratic deputy Sara Madruga da Costa said, calling back to the 2000 law, adding they plan to provide a “faster response and more effective response to this complex and alarming phenomenon” which mainly affects Madeira and the Azores regions in Portugal.

Madruga da Costa says that the distinction between consumer and dealer “is fundamental” to combat the horrors of synthetic drugs by applying their current laws to newer drugs. In addition to decriminalizing synthetic drugs, the text further eliminates the criteria based on the number of doses, or amount of drugs, to distinguish between consumers and traffickers (i.e. who can get arrested). However, it still aims to differentiate one from the other, so suppliers can’t relax yet. 

Cláudia Santos, deputy of the PS (Portuguese Socialist Party), noted that 23 years ago, the “historic decision” was made to decriminalize the possession of drugs for consumption in Portugal. Despite this legislature, from 2009 onward, the number of citizens convicted of crimes of consumption went up. “With this project, we want to reaffirm the option made for the prevention and treatment of consumers,” said the PS parliamentarian, considering that possessing drugs for consumption “should not be a crime,” The Portugal News reports.

Part of Portugal’s drug policy has always included treatment, and they hope to offer care more than ever, as psychiatric hospitalization due to unhealthy use of synthetic drugs has spiked, Business Insider reports. However, their system is far from perfect. There are currently year-long waits for state-funded rehabilitation treatment. 

You should know that while the country developed a progressive drug policy reputation early on, cannabis remains illegal. 

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Classic genetics such as Bubba Kush Pre-98 and OG Kush varieties will be available on a global scale, as two powerhouses team up. On September 21, Colombia-based multinational juggernaut Clever Leaves announced a partnership with legacy brand House of Kush, to be the exclusive grower and distributor of genetics globally.

Clever Leaves will produce genetics for House of Kush—thus expanding their reach outside of the United States and Canada.

Clever Leaves will cultivate House of Kush’s genetics at facilities in Colombia and Portugal over the course of the next three years. Clever Leaves’ footprint is global with smokable flower already being sold in Germany, Israel, and Australia.

Clever Leaves will produce House of Kush’s signature strain—Bubba Kush Pre-98—as well as other classics such as San Fernando Valley OG Kush. Different theories abound, but Bubba Kush appeared on the market in the ‘90s, noted by its sedative effects. People have turned to it to help with pain, anxiety, and insomnia.

The scale is massive: In Colombia, Clever Leaves boasts 18 hectares (44.4 acres) of cultivation. More importantly though, the company holds European Union Good Manufacturing Practices (EU GMP) Certification, a Good Manufacturing Practices (GMP) Certification by Colombia National Food and Drug Surveillance Institute – Invima, and Good Agricultural and Collecting Practices (GACP) Certification.

In Portugal, Clever Leaves operates on about nine million square feet of land, with 260,000 square feet of greenhouse facilities. They also have regulatory privilege there with a license from INFARMED I.P., the Portuguese pharmaceutical regulatory authority, with (EU-GMP) certification and are (GACP) certified.

House of Kush Genetics

The partnership will deliver House of Kush’s genetics to a wider market. “Going international was really a big step,” says House of Kush co-founder and Chief Sales Officer Steve Gardner. “Clever Leaves do such good work. And we’ve been so impressed with them. And we’ve really been working on this deal for almost a year. But when you get plugged in with a group like that, that can take you all over the place.” Gardner’s roles as serial entrepreneur, advisor, investor in sports and entertainment date back 30 years.

“I would echo that sentiment and also just bring in the point that other countries are more quickly adopting and having more open, flexible laws than what we’re experiencing currently in the U.S.,” says House of Kush co-founder and Chief Executive Officer Reggie Harris. “So having the opportunity to get there early in our growth strategy not only helps us improve our status as a U.S. company, but everybody’s in the game to be able to spread that knowledge and the product and be able to get out there. So [it’s as much of an] exposure type thing as it is a financial benefit as well, that the two kind of go together. It’s not one without the other.” Harris’ background as a senior executive in sports and entertainment goes back two decades.

“Our first introduction to Bubba Kush was actually through Matt Bubba Berger, who was one of the original cultivators, and obviously Bubba Kush was part of that founding group that came up with OG Kush as well,” Harris adds. “And I was looking at it and reached out to Steve [Gardner] and said, ‘You know, I got this interesting call, product opportunity. Let’s go sit down and talk about it.’”

Protecting those genetics is another story. While House of Kush has explored blockchain technology and other ways of protecting their genetics, continuing to develop their reputation as a brand is more valuable.

“The biggest protection for us is quality assurance,” Harris adds. “We’ve created a kush certified program, to where we go through and we tell people, these are the recommended ways of growing the genetics, this is the proper way, the proper soil, the proper water, all that type of stuff, because we know ultimately, right now, federally, we can’t protect it, it’s going to be some somebody could take it, we will lose more money trying to defend it, then we will just go on out being better than they are. So we spent a lot of time just trying to have the great genetics and the great SOPs around that to make sure that it comes out right on the other side and up to our standard.”

Regulatory Perks of Going International

Clever Leaves’ footprint is all over the globe, but each facility has a distinctive purpose. “We have two facilities, one in Colombia, one in Portugal,” says Julián Wilches, co-founder and Chief Regulatory Officer of Clever Leaves. “The Portugal facility is focused on flower. And in Colombia, the Colombian facility has been focused on extracts, raw materials, and finished products such as oils. Now, we have the opportunity, also of exporting flower from Colombia, which is something that we plan to do in the coming months. But now it is very important for us and we’re going to have access to additional genetics.”

One of Clever Leaves’ advantages is holding certifications in Europe. But one of the keys to growth is expanding internationally to improve chances of success.

“If you cultivate in the U.S., you cannot export it, because of the federal prohibition in the U.S.,” says Gustavo Escobar, co-founder and Chief Operating Officer of Clever Leaves. “So the fact that we can cultivate in Colombia and export it for medicinal purposes, opens the global market. We’re focused on four markets in addition to the U.S.: Australia, Israel, Germany, and Brazil. In Brazil, we cannot sell flower. So I would say three markets for flower: Israel, Australia, and Germany. But there are additional markets like Portugal and Italy, U.K., Ireland, most likely France, and Spain. Now we have Thailand. So the world is moving towards medicine and medicinal legalization.”

The partnership benefits both companies in ways that were not possible before.

“Working together, you can do better things,” Wilches adds. “So partnering with people with good genetics, and having the capabilities that were described—that will give us a better opportunity of success in those markets. So we believe in partnerships and we believe in working together and creating long-term relationships for being in the market in the long term with really high quality and good product.”

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Looking back on the trajectory of reform in Europe from the vantage point of 2032, a decade from now, this year, and particularly the spring and summer of 2022, will almost certainly be recognized as the European-wide tipping point for cannabis.

This is largely being driven by current events in Germany. The government just wrapped up several weeks of hearings on how to implement recreational reform. A white paper containing the recommendations of the same will be released in the fall, with draft legislation expected to be published by the end of the year. Beyond that, the timing is understandably a bit hazy, but the bill is widely expected to pass in the early part of 2023, with a recreational market on track to begin by the first part of 2024.

However, Germany is not the only game in town, as much as its impact on the conversation across the E.U. is huge.

The Domino Countries

There are currently several E.U. countries on the verge of recreational reform that stand poised to follow Malta into recreational reform this year by legalizing home grow. These are:

Switzerland – The country is launching its recreational use city trials this year. While outside of the E.U., the country’s forward progress on recreational reform is one of the key markets to watch in Europe right now.

Portugal – Now established as one of the most important medical cultivation countries in Europe, the country is on the verge of formal recreational reform—and will proceed with home grow as a first step to creating a fully integrated recreational market with international juice. Portugal also has the distinction of being the most liberal country on drug policies across the E.U.

Luxembourg – The country’s current government promised to implement recreational reform before the end of their first term (which ends next year). Medical reform was implemented during 2018. Currently, the first step into the adult use market will be home grow also, although given the size of the country, it most likely won’t be a large producer.

Austria – The country will certainly follow its DACH trading partners—Germany and Switzerland—across the recreational line in the near future. Medical reform has already been implemented here and the country as a strong hemp industry.

Medical Reform Is Still in Motion

Adult use reform of course is not the only discussion in the room. Medical reform has also been moving forward in important jurisdictions this year—leaving no major country within the region that does not recognize at least medical efficacy of the plant. Even Albania, in accession talks with the E.U., is moving ahead with medical use.

France – The country formally (and finally) moved forward on a pending medical trial earlier this year. The jury is still out on whether the country’s president Emmanuel Macron, will be pushed by his more liberal government to move forward on some kind of recreational discussion. As the cradle of hemp production in Europe, the country has also been the testing ground for changing CBD policy across the E.U.

Spain – The home of the cannabis club announced their recognition of medical efficacy this summer. This is significant for several reasons, including the fact that Spain is also apparently ramping up its medical cultivation while allowing the clubs to continue to operate.

As a result, Europe is very much having its “2012” moment. By 2024, it is almost certain at this point that there will be, beyond Holland, several European countries where recreational cannabis is legal.

The Global Impact of European Reform

While it is still hard to predict accurately, make no mistake about it: This change is seismic, worth a great deal of money, and will have huge repercussions.

It is unlikely that in the U.S., for example, serious arguments will hold much longer against finally legalizing cannabis on a federal level.

Beyond this, it is almost certain that multiple countries in Asia will follow both events in the E.U. as well as Thailand and probably Indonesia’s early lead. Even if this change is also “only” medical for now, as has been seen worldwide at this point, this is only the first step.

From this vantage point, it is also not hard to envisage a world where the plant is finally, formally recognized, and at an international level.

Does This Mean Smooth Sailing from Here?

Just because legalization is moving however, does not mean there will be no detours much less distractions. This starts with a domestic rollout of reform, which on the recreational front will almost certainly also include some states, cities, and towns also placing a ban on sales.

The discussion about tourism is also much in the balance as Holland continues to make noise about banning cannatourists from Amsterdam. However, it is hard to believe that this will last, even in Holland. Greece, for example, which is already inviting German pensioners to spend a warm winter away from higher gas prices and lower temperatures, will ignore this valuable segment of the market.

On the regulatory front, Novel Food looms as a large and unsolved problem—and not just for CBD but also the full plant discussion.

All of these issues will take time and money to resolve. However, the most important step has clearly been taken in Europe this summer—and that will reverberate in turn, as perhaps the last major push necessary for the final dominoes to begin falling. Regionally and, of course, globally.

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For those watching the swing of European states into the pro cannabis column, the developments in Portugal have been a source of both optimism and frustration for the past several years.

The production of cannabis for medical export purposes was initiated by Tilray as they looked for a country more open to cannabis cultivation than Germany in 2017. Since then, commercial cultivation and extraction has blossomed domestically. Indeed Portugal is now seen as one of the most important feeder countries for the German medical cannabis market.

As a result of this as well as the general tolerance of cannabis in the country, the legislature was widely expected to introduce and pass formal recreational reform legislation late in 2021 or at the latest, by early this year. However, the issue stalled when the sitting government failed to pass the 2022 budget and a snap election was called for the end of January. The swearing in of the new Parliament was also delayed by a month and a half due to controversies that arose from the counting of overseas ballots.

In such an environment, cannabis reform is not going to be the priority.

European Cannabis Reform Is a Zeitgeist Topic

However, those advocating for reform have not just gone away. Further, it appears that as of this summer, the prioritization of legalization has re-entered the political room.

The Left Bloc party, one of the political groups that helped bring about the fall of the old government by voting against its budget, is renewing its calls for cannabis legalization—even if it is of the personal, home-grow variety. However, they also are expecting support from the ruling Socialist Party in going a bit further than this—namely the establishment of a formal industry.

According to Left Bloc member Catarina Martins, “One year ago this week the initiative of the Left Block was debated in the parliament: the legalization of cannabis. As you know, this process did not come to an end.” The party believes that this is the time to push for reform because of a collective agreement amongst elected officials (if not Portugal, traditionally beyond this) that Prohibition has never worked.

“To defend public health is to end hypocrisy,” said Martins. “And we believe that there are now all the conditions to end this hypocrisy in Portugal. We know that there are so many people, on all sides of the parliament, which have already realized that the hypocrisy of prohibition has been a way of putting young people at risk.”

Further, in what seems to be a page out of the developments in Austria right now, the Left Bloc is pressuring their colleagues to pass this reform based on the principal of personal freedom.

Serious Momentum or More Stalling in Portugal?

For those following the political particulars on the ground, this is apparently the beginning of a new domestic momentum to finally pass meaningful legislation. This is the case because of Portugal’s history on drug use. The country infamously decriminalized the personal use and possession of all drugs in 2001 (which as a byproduct also influenced the Oregon decriminalization measure in Oregon in 2020).

The legitimacy of this call for legalization may also sound a bit strange to foreigners because of who is pushing for the reform to progress. The Left Bloc party is a product of the merger of several groups on the left side of the political discussion including the Marxist People’s Democratic Union, the Trotskyist Revolutionary Socialist Party, and Politics XXI.

Mention the word “socialist” much less terms like “Marxist” or “Trotskyist” in any political debate in the United States, and one is laughed out of the room.

This is, of course, also quite different in Portugal, where the party has elected members in the national legislative body.

While the constituent parties that have made up its base sound radical, particularly to Americans, the party also has a reputation as the country’s largest supporter of women’s and gay rights, with a strong civil liberties platform that takes vocal stands against racism. In Portugal at least, they are seen as “socially libertarian.”

“Controlling the risks and putting an end to hypocrisy is public health policy and this is also the commitment that the Left Bloc is making in a month in which we celebrate the 20th anniversary of the national strategy to combat drugs,” said Martins.

It will, as a result, surprise nobody watching this discussion, even outside of Portugal, especially considering Germany’s decision to legalize recreational use this year, if Portugal does the same this year—even, despite all the delays, beating Deutschland to the punch.

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As the world contemplates a whole new year, whether or not COVID will finally recede, there are a few things to cheer about, including cannabis reform. Namely, no matter how many uncertainties face us all, as grey January stretches beyond the holiday lights, there is certainly cheer in the air that will last much longer than the season.

Indeed, there are plenty in Germany right now who are already making plans for infused Weihnacht treats just a few years hence. It is now clear that cannabis will take its place quickly in German traditions, Christmas being just one of them. Canna-Glüwein (hot, mulled wine), anyone?

Beyond this, the rest of the EU now teetering on the edge on this issue, has now woken up to the reality that no matter what they decide to do (Portugal, Spain, Italy, Greece, Malta and, of course, the current laggard, France), now that Germany has just uttered the declaration that is the beginning of the end. If not an inevitable form of economic development and tax money in a world starved of the same.

Cannabis has turned a major corner in Europe in 2021. Here are the major hallmarks of the year.

Red, Amber, Green, Go Deutschland!

Germany’s new “Traffic Light” political coalition has promised to address the issue of recreational reform legislatively in 2022. Unlike the U.S. where multiple attempts to pass federal cannabis reform have failed, this is likely to happen. 

In the initial rollout of reform, however, do not be surprised if the Germans decide to follow the Swiss and allow regular pharmacies to be the first port of call for both medical and recreational users. It would solve several issues at once—starting with the establishment of tight restrictions on cultivation and retail supply chain. 

A short term, interim solution such as this will knock out a far more contentious issue—how to structure a licensing system for everything from cultivation in the country (and by whom) to specialty shops that resemble American or Canadian “dispensaries.” Namely not medical establishments. Plus, online sales.

This is for both Germany and cannabis reform, expect there to be several iterations of reform, starting with state and city experiments that will inevitably see Berlin, Bremen, Dortmund, Frankfurt, Dusseldorf, Cologne and Munich on the front lines (because such ideas have been avidly pushed on a municipal level before).  

Also, don’t forget that it basically took four years after the law changed and two after the cultivation bid was finally awarded, for there to be distribution of German cultivated medical cannabis. Don’t expect the details of recreational to be handled or hammered out much more quickly. See Canada.

In the meantime, however, full decrim will become the law of the land, and patients will be free of prosecution, both for possession and presumably (hopefully) reasonable home growing. Despite the reluctance to actually have cannabis cultivated in the country, either by patients or companies (see the drama over the first cultivation bid), this is not 2017. Germans, albeit grudgingly, now admit that the drug does work, as a drug, even if they are not yet of one voice in the majority that cannabis prohibition has of course, failed.

Regardless, German recreational, just as medical reform was before it, is a huge, huge step which will drive other countries across the region forward too.

Malta and Luxembourg will Lead the Way

It is a sign of how convoluted the Dutch situation is, if not national position, generally, that the island of Malta led the way on actual, formal, federal, recreational cannabis reform within the European Union (EU). Indeed, if there are analogies to be made, Holland is kind of like the European California—creating a market that exists in the grey areas but is only now facing a discussion (and further one far from complete) about how to federally regulate the industry.

Luxembourg also, it appears, was just hanging back until another country took the leap, despite promising the same in 2018 as a new coalition government took the reins there. Now there is no excuse for any more delays.

Portugal will also inevitably now enact reform as soon as the smoke from the general election early next year clears—and no matter who wins. The country needs an economic boost—either from tourism or exports, and this is a natural solution.

Beyond this, Spain may well follow a Dutch model to formalize production for its clubs rather than coffee shops in the next 12 to 24 months.

Also expect to see Austria, Italy, the Czech Republic, Greece and potentially outliers like Belgium begin to move with the herd, even if in the creation of experimental markets. This may or may not start to happen next year, but it will most certainly catch on within the next 24 months.

The Swiss Wild Card

Do not forget, of course, that the Swiss began preparing for a recreational trial rollout that now has a calendar date set for actual lift off in 2022. Companies have been submitting and obtaining approvals for the last eight months or so.

The beginning of this market, with its own strange requirements and rules, will also inevitably drive discussions and the shape of reform just across the DACH if not other EU borders the country shares with other countries. Everyone will be watching what goes down in Der Schweitz—including the unique waiving and blending of certain kinds of certifications—including but not limited to Novel Food and GMP.

Other Notables (or Not)

Try as they might to get some respect, the British cannabis industry, such as it is, has weathered difficult times, and these do not seem at least for now, to be ending any time soon. 

In contrast to the British on both European membership and cannabis reform, North Macedonia will inevitably play a role in the immediate future, even if just as a source of cheaper flower and oil extracts.

Poland is also still teetering on the brink of actual if not accessible medical reform, but expect this now also to speed up.

The Growth of Import Markets Serving Europe

The year 2021 was notable for another reason. Feeder markets will target EU if not Germany at their founder’s mandate, continued to grow. This means that no matter what happens with future cultivation discussions, in any country, starting with Germany, there will be no shortage of other certified cannabis from countries all over the globe at this point, looking for a German home. 

For this reason, there will be significant downward pressure on both the medical and “other” flower and biomass discussions.

Bottom Line On 2021?

If there is an analogy to be made, the situation in Europe now on the ground looks a great deal like the conversation in the U.S. in 2012, post presidential election that returned Obama to his second term in office. Namely, two states, Colorado and Washington State, voted on state mandates to create state markets. They both bloomed in 2014—and the rest, as they say, is history.

The developments this year in Europe, and even some of the stuttering delays, no matter their cause or ultimate resolutions, resemble this period, in many ways. And that spells great news for the industry, on all fronts.

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Budget wars, not antipathy to the prospect of the full and final legalization of cannabis, will probably put Portugal behind on the recreational reform question within the European Union (EU). The country’s 2022 budget had included tax cuts and increased public investment to stimulate the economy post COVID. It was opposed by both hard Left- and Right-wing parties. In late October, such political opposition to the budget proposed by Prime Minister António Costa triggered a final meltdown of the coalition that has governed here since 2015. 

In a rare event for the country, indeed one that has not happened since Portugal transitioned to democracy in 1974, the government was dissolved two years early by the right-wing President Marcelo Rebelo de Sousa. National elections will be held on January 30 of next year.

What happens next, even on the cannabis discussion, is anyone’s guess. That said, it is also very unlikely that any new government here will oppose forward cannabis reform. The country has a vested interest in the development of the sector. And even though the licensing process on the medical side has been fraught with difficulties if not delays, it is clearly proceeding.

Why is Portugal Important in the European Cannabis Discussion?

Portugal is famous for its liberal approach to all drugs, although it is inaccurate to say that everything has been “decriminalized.” There have been various attempts to reform the country’s drug policy ever since the 1970s. In the present, cannabis is not technically legal here, although the medical cultivation sector has certainly taken off since 2017.

In early June, a bill to formalize the legalization of the personal use of cannabis was proposed by two parties, the Left Bloc and the Liberal Initiative and forwarded to the Health Commission for debate. This debate never happened due to repeated requests for postponement.

Now that the government has been dissolved, the legislation will have to be re-introduced by the new government.

Regardless, since 2017, when Tilray began construction on its cannabis facility, Portugal has begun to play a larger and larger role in the entire European cannabis discussion. This, so far at least, is less about the liberalization of policy domestically and more about the ability to obtain cultivation licenses (although this too is not as “easy” as many in the industry have infamously claimed). That said, the country has the most operating regulated cultivation facilities and licenses of any EU sovereign state outside of Holland. Of course, unlike the Dutch, these are all of the internationally regulated, GMP variety.

As it stands, the market is geared towards the production and, coming soon, extraction of the plant primarily for export (and even more specifically, targeted at and for the German medical market). Indeed, production and labor costs here put the country, along with Greece and evolving African cannabis cultivation economies, roughly on par in terms of cost per gram (both for flower and extracts).

What Would a Portuguese Rec Market Actually Impact?

The answer is, quite obviously, that a recreational market here would positively affect not only the broader economy but the tourist sector, in the process creating a booming market with a canna flair.

That said, it is also clear that this might in turn be a bit of a stretch for a region where the most forward cannabis reform country (Luxembourg) just punted on the question and took a slower path to the entire conversation with a home grow provision (along with supporting a regulated cannabis seed market).

However, after Europe emerges from what is likely to be another hard COVID winter, such sensitivities could well be overrun by politics and politicians who are looking for economic stimulation any way they can get it. This entire conversation, of course neatly fits that bill, no matter how contentious economic development with a cannabis flair still is outside of Greece (at least within the EU). Certainly, the medical sector has gotten more respectable over the last four years. Even the German government is now considering the same, in part because of the estimated tax revenue that is likely to come of the formal development of this market.

Bottom line? Portugal is no longer the outlier it once was on the topic. Indeed it may now fall behind full reform in other countries even within the EU, starting with both Luxembourg and Germany.

That said, the development of a fully legit market here will undoubtedly continue to impact the entire industry across the continent—starting with sourcing medical production bound for elsewhere, but undoubtedly, as the entire discussion progresses, recreational cannabis products too.

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Ever since Tilray decamped for Portugal during the early days of the German cannabis cultivation bid circa 2017, the country has been touted as “the place” within the European Union (EU) for the German distributors to source their product.

That said, the actual progress of the industry has been a little slower than that—in part because of the length of time it takes for legislative change to happen. Indeed, it was not until April 15 of this year that Ministerial Order No. 83/2021 was finally published. According to local legal practitioners, at least, this order also has clarified a great many practical aspects of the application process. This includes reference prices.

Looking at the progress of cultivation licenses, however, and the proof is in the pudding. To date, there have been 114 applications for the cultivation of cannabis to the National Medicines Agency (Infarmed). Of these, just 23 are “under analysis,” 11 are awaiting a response from the cultivators, and 61 are waiting to be inspected (a major issue facing almost every budding cannabis cultivator thanks to COVID.)

Here are a few more dampening statistics. Of the 19 currently operational cannabis cultivation facilities, only three can manufacture medical grade extracts and products. One of these is in business solely for the purposes of providing “quality control.” The remaining facilities are in business to cultivate the plant as a “raw material,” or, of great interest of course to every German distributor looking for new sources of EU cultivated product, “active substances.”

What, exactly, is going on?

EU GMP Is Not an Easy Certification

Despite its reputation to the contrary, including the now pending legislative move to formally legalize adult-use cannabis, the medical authorities here are very strict. They must be. They are the country’s version of the Federal Drug Administration (or FDA).

Indeed, it was only this February that Tilray announced that it had received the first and only market authorization for medical cannabis products in Portugal. This means that everyone else is cultivating for export to other countries (notably Germany). Many German distributors (for starters) are currently importing raw flower (or flos) as “Active Pharmaceutical Ingredients” or APIs. There is clearly a market for the same.

Getting a medical license also takes capital. And it is also very clear that Portugal is also not the only game in town. Greek, Macedonian and, as of this year, African cannabis is also starting to enter the room.

Further, while there is a great deal of enthusiasm, generally, about the coming cannabis revolution on the recreational side, the medical game remains, as always, a difficult nut to crack, even after the capital has been raised. This is not always a popular task to take, but it is clear that when the dust clears, Infarmed is not interested in being just a pass-through agency.

According to Rob Smallman, a highly experienced Canadian cultivator who has been involved in multiple European projects, including in Portugal, “experience and a focus on the actual business in the room is a far better strategy than just satisfying investors.”

Michael Sassano, CEO and founder of SOMAI Pharmaceuticals as well as the recent recipient of an innovative product grant by the Portugal 2020 committee, concurs. “Cannabis entrepreneurs need to know exactly what they are doing to succeed and receive full certification,” he said. “Medical cannabis growing, and manufacturing requires more than just a lot of capital. It requires deep knowledge of regulations and GMP standards plus serious knowledge of the cannabis plant to surpass timely building, operational, and international sales goals.”

Portugal 2020 is a partnership agreement between Portugal and the European Commission to fund policy goals of interest to both member states and the EU as a whole.

Domestically, however, there is another catch. In a land known rather infamously if not accurately as “anything goes,” on the “illicit drug” front, cannabis as medicine is just as foreign here as it is everywhere else. Not to mention, just like everywhere else, medical cannabis is very expensive. The monthly price tag of about $600 is out of reach to most, if not many.

What Impact Does Pending Recreational Reform Mean for Portugal?

There are several answers to this question. The first and most obvious one is “nothing” since Infarmed only regulates a medical market, not a broader consumer one (more like BfArM in Germany than the FDA in the United States).

However, this is also not the only answer. Forward reform of Portugal’s legislative approach to recreational reform has repeatedly stalled, even as both Switzerland (outside of the EU) and Luxembourg (within it) have progressed.

There is of course this twist. Just like the Czech Republic (and Switzerland) have now started to discuss (and Holland has been in the midst of the same since 2017 when Dutch insurers stopped covering the drug the same month the German Bundestag or Parliament, voted to cover it under Deutsch public health insurance), the entire discussion of “medical” cannabis is coming under scrutiny. Particularly for domestic use, rather than foreign export.

This is a simmering issue. But it is bound to stay in the room, particularly given the advance of overall cannabis reform across Europe.

In the meantime, it is clear that Portugal is proving to be a stringent port of call for all things medically cannabis related—and far from just a pass-through cultivation or extraction state.

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With Amsterdam cutting back on cannabis cafes, these countries may soon become must-visits for rolling stoners.

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