A legal analysis warning that Germany's recreational cannabis legalisation plans may breach European regulations has thrown those plans into serious doubt.
Following the 2021 federal election, the Social Democratic Party, the Free Democratic Party and the Greens joined forces in a 'traffic light' coalition led by chancellor Olaf Scholz, pledging to regulate cannabis and make it available to adults through licensed retail outlets.
Justice minister Marco Buschmann expressed optimism in May 2022 that legislation could clear parliament by the following spring, putting "the first legal joint" on shelves by 2023.
According to The Guardian, concerns that a poorly constructed law could be struck down by the European court of justice have made the government more hesitant about moving forward.
A leaked document from the German parliament's research service, released this week, cautioned that the proposed changes would conflict with European regulations.
Though the analysis was commissioned by the conservative Christian Democratic Union — a party that opposes legalisation — parts of its assessment resonate with figures inside the government.
One official said: "There is a degree of caution about promises of a breakthrough before the end of the year. The complexity… is starting to sink in, and there's a sharper awareness of the risks involved."
Earlier discussions on legalisation centred on the United Nations 1961 single convention on narcotic drugs as the primary barrier, but government sources now point to a range of European laws as the more significant obstacle.
Among the potential sticking points is a 2004 Council of the European Union decision that obliges member states to make the sale of drugs, cannabis included, "punishable by effective, proportionate and dissuasive criminal penalties".
The 1985 Schengen agreement, under which most internal EU border controls were scrapped, also commits its signatories to preventing the illegal export, sale and distribution of "narcotic drugs and psychotropic substances, including cannabis".
The coalition is still expected to legislate within its current term, but sources say it is keeping a close eye on Luxembourg, where the government put forward a proposal this summer to permit recreational cannabis use in private settings while keeping it banned in public.
Such an approach might allow Germany to legalise cannabis without running afoul of European legal requirements.
Australian companies are currently prohibited from exporting to adult-use cannabis markets, though Germany has been flagged as a significant potential opportunity should that position change.