The German government is swiftly moving to legalize the sale of cannabis for recreational purposes by the second half of this year. Germany has long been viewed as a conservative and relatively strict country, but when it comes to cannabis usage the Germans have been quite progressive.
This is another move by the liberal coalition that took over Germany’s government late last year. Cannabis will be legally sold in licensed stores and only to adults. The decision is a crucial one for cannabis legalization within the European Union as Germany is the most influential member, especially following the exit of the United Kingdom. Several other countries have already eased their stance on cannabis including Portugal where Canadian cannabis giant Tilray (NASDAQ:TLRY) already has an established production facility.
In markets like Germany where cannabis is or is moving towards legalization, CBD products are already on retail shelves. The fact that the psychoactive ingredient THC is not found in CBD products definitely helps it gain more acceptance than marijuana itself. As CBD and cannabis products begin to gain popularity and legalization around the world, the absence of US federal legalization becomes more glaring.
The cannabis stock industry has been badly beaten down in 2022, with the Global X Cannabis ETF (NASDAQ:POTX) posting a 55% loss for the year. But stocks like Sundial Growers (NASDAQ:SNDL) and Endexx (OTC:EDXC) have some promise to them as long-term investments, especially as more governments look to legalize recreational cannabis usage amongst adult citizens.
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