Green Light for Cannabis Startups: Germany’s Legal Framework Remains Stable Until Fall Evaluation

Despite political pressure from Bavaria’s CSU, the recently formed coalition between Germany’s CDU/CSU and SPD has not included a reversal of the country’s partial cannabis legalization in its coalition agreement. This development signals continued stability for cannabis clubs and startups—at least until the scheduled law evaluation this autumn.

A Political Tug of War Ends in a Compromise

The CSU, particularly vocal during coalition talks, had pushed to reverse the adult-use cannabis legislation passed under the previous “Ampel” government. Bavarian Interior Minister Joachim Herrmann described the law as a “dangerous mistake” and called for full recriminalization. Even Bavaria’s Health Minister Judith Gerlach joined the chorus, insisting that legalization should be undone “swiftly and entirely.”

However, this view did not prevail in the final negotiations. The CDU, while less enthusiastic about legalization, did not prioritize cannabis policy during the talks. As a result, the coalition agreement now calls for a “neutral and data-driven evaluation” of the cannabis law this fall—without any immediate legal rollback.

Cannabis Clubs and Startups Can Move Forward

This decision provides breathing room and legal clarity for Germany’s newly forming cannabis industry. Since April 1, 2024, it has been legal for adults to possess and grow limited amounts of cannabis. Non-commercial cultivation clubs—central to Germany’s unique approach—are allowed to grow and distribute cannabis to members under strict conditions.

While implementation has varied across states (with Bavaria notably refusing to grant any club licenses so far), the national framework remains intact. That means founders, growers, tech providers, and cannabis-related service companies can continue building with confidence.

A Booming Scene with Momentum

The next few months offer a unique opportunity:

  • Clubs can organize, scale, and refine operations.

  • Ancillary businesses—accessory brands, tech systems, compliance tools—can find early customers.

  • Investors gain a clearer regulatory runway until at least fall 2025.

Industry experts expect that the upcoming evaluation will draw from both public health data and market dynamics, not political rhetoric. As Burkhard Blienert, the federal drug commissioner, emphasized, Germany needs a “drug policy that protects, supports, and helps”—and that cannot be built on prejudice.

The Bottom Line

The cannabis law may face scrutiny this fall, but for now, the market is open—and the legal environment remains unchanged. Startups have a golden window to innovate, establish brands, and shape what could become the leading regulated cannabis ecosystem in Europe.

Germany’s cannabis future is still being written—but today, the pen is in the hands of its entrepreneurs.

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