Luxembourg’s incoming coalition government agreed to include recreational cannabis legalization as part of the group’s policy goals, as the landlocked nation looks to become the first country in Europe to permit and regulate adult-use marijuana.

The three parties that comprise the ruling coalition government – the Democratic Party (DP), Luxembourg Socialist Workers’ Party (LSAP) and the Greens (déi gréng) – announced Thursday at a news conference that they will legalize recreational cannabis and its commercial distribution.

Although Luxembourg itself has only about 600,000 people, the potential market could exceed 10 million if nonresidents are allowed to participate as consumers – a significant opportunity for businesses vying to get a foothold in the broader EU market.

Because Luxembourg is a member of the European Union, neighboring citizens in France, Belgium and Germany are free to enter the country without a travel permit.
“If the reform allows for sales to nonresidents, the impact would be massive,” Bill Wirtz, a Luxembourgian and policy analyst for the Consumer Choice Center, told Marijuana Business Daily.