Germany looks set to legalise cannabis in a move that could be worth €4.7 billion annually

Germany looks set to legalise the sale of cannabis for recreational purposes after a deal was reached between the three political parties likely to form the country's next governing coalition.

The left-leaning Social Democratic Party (SPD), the environmentalist Greens and the liberal Free Democratic Party (FDP) have been locked in intense coalition negotiations in recent weeks following a landmark election in September.

All three parties campaigned around reforming cannabis laws, calling for regulation of the sale and consumption of the drug and ending Germany’s criminal prohibition.

According to Politico, the three parties plan to "introduce the regulated sale of cannabis to adults for consumption purposes in licensed stores."

According to their report on the subject, the new legislation will ensure quality control, prevent the distribution of contaminated products, and guarantee the protection of minors. However, it is not yet clear whether the cultivation of cannabis within Germany will also be legalised.

A major evaluation of the new law would also take place after four years to assess its implementation and effects on German society.

According to a study conducted by the University of Düsseldorf, and commissioned by the German hemp association, legalising cannabis could see Germany add around €3.4 billion in tax revenue to the nation's economy annually.

It would also save the judicial system in the country around €1.3 billion every year and could create around 27,000 jobs - a notable boost for Europe's largest economy.

Along with proposals for recreational legalisation of cannabis, the new laws will also include expanded drug checking measures, in which users can have their drugs checked for their chemical composition and can be warned of particularly dangerous ingredients.

Germany's legalisation of adult-use cannabis would make it the fourth country globally to end prohibition - joining Canada, Uruguay and Luxembourg, which last month announced changes to the laws on cannabis that will make it the first country in Europe to legalise production and consumption of the drug.

Under a new raft of laws presented by the Cabinet, people over the age of 18 in Luxembourg will be able to grow up to four cannabis plants per household for personal use. The place of cultivation will be limited to the usual place of residence, indoors or outdoors, on a balcony, terrace or garden.

A ban on the consumption and transport of cannabis in public will stay in place, but the new legislation would sharply lower fines punishing people who carry three grams or less from the current €250-€2,500 to as little as €25.

Under the new rules, the sale of cannabis seeds in shops will also be permitted, along with the importation of them from abroad or bought online.

Meris Sehovic, co-president of Luxembourg’s Green Party, said the government intends to regulate large-scale growing as well, eventually hoping to develop national organic production.

A vote in parliament is still required to confirm the proposals and reduction of sanctions — but the plans have the backing of the governing coalition.

The use of cannabis for medicinal purposes has been legal in Germany since 2017.

Given the combination of Germany's size, with a population of 83 million, and its global political clout, the move to legalise cannabis is expected to create a positive ripple effect for legalisation efforts around the world.

People Before Profit TD Gino Kenny previously told Buzz that countries moving towards legalisation could have an effect on Ireland reforming its own laws around the use of cannabis.

"Any kind of policy change in relation to cannabis in a different country will have a knock-on effect, particularly in the European Union," said Mr Kenny, who is set to introduce the Cannabis Regulation and Control Bill 2021, which will be the first time in eight years that legislation around ending the prohibition on cannabis will be before the Dail.

"So anything that is chipping away at prohibition is a good thing in my opinion."