France is one of Europe’s most strict cannabis policy countries, with a ban on possession, cultivation, recreational use and consumption. It also paradoxically has the highest rate of cannabis consumption on the continent. As the French government grapples with mounting public debt –currently at 112% of GDP– legalizing and taxing cannabis presents a potential fiscal lifeline.
France could reap major gains by legalizing
According to The Guardian, the strict law in place leads to high costs for law enforcement as well as strain on the justice system. The Guardian reports that approximately 200,000 individuals are charged with drug offenses each year, and substantial resources are allocated for anti-cannabis campaigns.
The Guardian’s economic experts suggest, however, that France may be able to overcome its financial problems by legalizing marijuana. An economic advisory panel within the Prime minister’s office conducted a study in 2019 that estimated that legalization could generate €2.8 billion ($2.9 billion) in fiscal receipts and create up to 80,000 jobs.
Anti-Cannabis Costs Are High Despite Economic Stress
Some legalization advocates claim that this could reduce crime, especially gang related crimes by taking away a lucrative criminal market. Regulated sales may also lower the price of illegal sellers and reduce violence on the streets associated with drugs.
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The government may be considering unpopular spending cuts and tax increases. These revenue streams, along with the savings in enforcement costs, can provide relief. With national debt at €3.2 trillion and a budget deficit projected at 6% for 2024, cannabis could offer France a much-needed financial boost.
Future of French Medical Cannabis is in Limbo
France’s trial of medical marijuana faces political uncertainties and delays despite its potential advantages. The program, originally set to expire in March 2024 is now dependent on an amendment that would extend the program through to 2025. The alignment of European legislation with medical cannabis is in doubt due to political delays.
Over 2,000 patients may lose their access to treatment if immediate action is not taken. This highlights the importance of a permanent framework.
Germany Lighting Up: A Divergence of Neighbors
Germany, on the other hand, has a cannabis market that is more progressive. Cannabis Control Act, which was passed in Germany earlier this summer, is credited with a rapid increase. Sanity Group, one of the leading German cannabis companies, has reported a tripling in its annual revenue due to changes in regulations. Germany could become Europe’s cannabis market leader if it expands into cannabis for adult use.
France’s strict policy is being pushed to its limits by neighboring nations and a growing debate in the public. Legalization would not only help France address its fiscal problems, but it could also make France a contender in the growing European cannabis market.