France's debt crisis sparks debate over legalising cannabis to Boost Economy

In its article, The Guardian highlights that one proposal, gaining attention in France in recent years, is the legalisation of cannabis. 

France's public finances are far from healthy, despite the country not being technically bankrupt. The national debt has reached 3.2 trillion euros, which is 112 per cent of the country's GDP. Interest payments on this debt are now the second-largest public expenditure, following education, and even surpass what is spent on defense. This year, the budget deficit is projected to be 6 per cent, well above the EU's 3 per cent cap.

Without the euro, France could be facing a fiscal crisis, as some of its debt now carries higher interest rates than Portugal or Spain.

In response, Prime Minister Michel Barnier has proposed 20 billion euros in tax hikes, targeting large companies and the wealthiest 0.3 per cent of households, along with 40 billion euros in spending cuts. However, both Marine Le Pen’s National Rally (RN) and the left-wing New Popular Front (NFP) oppose different aspects of Barnier's proposed budget. As a result, the prime minister faces the possibility of a no-confidence motion when he attempts to pass the bill through parliament before Christmas.

The Guardian Europe columnist Alexander Hurst doesn’t necessarily agree with Barnier’s approach, but given the complexity of the challenge, he’d sympathize with Barnier if he were to throw up his hands, lounge on a couch, light a joint, and skip work. This brings up an interesting question: why not legalize cannabis and tax it to save money on law enforcement and generate tax revenue for the government?

Hurst realizes this sounds far-fetched, and he has no illusions that Barnier is considering such a move, or ever would. So why raise it? First, because crises present opportunities for experimentation – something France desperately needs instead of continuing the same debates about issues like ending medical care for undocumented people or restoring the retirement age to 60. And second, because the French are focused on criminality and the economy, and this issue touches on both.

Here’s a French paradox – though not as fun as the one involving plenty of cream and low heart disease rates. According to the EU drugs agency, France has the highest cannabis consumption in Europe, yet it also has some of the continent’s strictest drug laws.

The French interior ministry reports that around 200,000 people a year go through the criminal justice system on some form of drug-related charge. Even if not all of these are cannabis-related, and most defendants don’t end up in prison, the cost of anti-cannabis enforcement still adds up.

A 2019 study conducted by an economic advisory board within the French prime minister’s office revealed that the state spent 570 million euros annually on anti-cannabis enforcement and legal proceedings. The same report suggested legalizing recreational cannabis, selling it through a state monopoly, and using part of the revenue to help former small-time dealers find legal employment.