What does Italy’s marijuana decriminalization effort mean?
World cannabis news has been abuzz in recent weeks, as decriminalization of the domestic production and personal use of cannabis (and certain psychoactive plants like psilocybin) apparently will be on the ballot in Italy. Over 600,000 signatures, well in excess of the necessary 500,000 signatures, have now been gathered to require a vote. If approved when voting takes place next Spring, prison sentences for most cannabis related offenses would be eliminated. Approval is considered likely since approximately half of Italians polled favor legalizing cannabis. There is, however, strong opposition from right wing activists.
Where has Italy been on cannabis?
The majority of European countries, including Italy, have legalized medical marijuana, but some also have decriminalized home grow and recreational use. Italy’s medical program is run and owned completely by the government and its state-owned pharmacies, so there is no private enterprise involved.
Through the first half of the 20th Century, Italy was one of the largest producers of industrial hemp in the world, with quality considered among the world’s best (and pricing that reflected this). As synthetic fibers took hold in the 1950s, Italian hemp production waned. In the 1970s when Italy signed a number of global anti-drug treaties, hemp production all but stopped. In 2016, Italy relaxed its restrictions on hemp production (and CBD derived from it) with over 4000 hectares of production estimated to be active in 2018. Many consider Italy’s growing conditions to be ideal for the production of cannabis.
Back in 1993 they had decriminalized possession but a bill passed in 2006 significantly increased prison terms for growing, selling and possession. That law was somewhat softened in 2014. Also, they recently decriminalized small home grows but increased the penalties for selling cannabis.
What does the referendum accomplish?
After approval from several courts to ensure the referendum is constitutional, the President, Sergio Mattarella, will set a date for voting, which many assume will be early next year. Its main purpose: to remove prison sentences for selling cannabis, and eliminating the risk of the suspension of your driver’s license for possession. While this is a decriminalization bill, the introduction to the signature drive calls it “a referendum towards the legal regulation of cannabis in Italy.” While this will not lead directly to legalization, therefore, it is being undertaken as a step leading to full legalization.
One wonders, why doesn’t the legislature just vote to approve this without the need for a referendum, which they could? For a variety of reasons, Italian politicians wish to keep away from challenging issues related to morality. Referenda were used to deal with issues such as gay marriage, legalizing divorce and abortion. Although it was back in 2014, Pope Francis also has spoken against any form of drug legalization, and of course the Pope’s views weigh heavily on Italian voters and consumers.
Are North Americans interested in the European market?
American operators have increased their interest in expanding into Europe. In April of this year, large publicly-held US multistate operator Curaleaf acquired EMMAC Life Sciences, the largest European vertically integrated independent cannabis company (including operations in Italy and four other countries) for $286 million in cash and stock. A Canadian operator, RAMM Pharma Corp., acquired a major Italian vertically integrated extraction company called Canapar in May of this year for about $26 million. Canadian player Aphria, which announced a deal to merge with Tilray earlier this year, did so in part due to Tilray’s move to expand further into Luxembourg and Poland.
As the U.S. inches closer to federal legalization, operators are realizing more and more that they need to begin lining up alliances and opportunities in Europe and elsewhere throughout the world. Decriminalization does not create the opportunity for legal import and export in Europe, but it does represent a step towards legalization and the taxes, job creation and global distribution market that is likely to develop.
