The change of policy is an attempt by the government to crack down on drug-related crime and the black market drugs trade. Ministers will now be able to regulate the currently illegal cannabis market.
The new legislation has the backing of the government coalition, but a vote in parliament is still required to confirm the new proposals.
It puts Luxembourg, a small landlocked with a population of just over 600,000 gente, at the forefront of a growing movement across the continent to relax cannabis legislation.
Italy will likely decide whether or not to decriminalize cannabis in a referendum next year, after campaign groups managed to gather the required 500,000 signatures required to force a vote.
The consumption of cannabis is not criminalized under Italian law and marijuana for medical purposes is permitted. sin embargo, comprar, selling and mass cultivating the herb is illegal and dealers could face up to 10 years in prison if convicted.
If the public votes to decriminalize cannabis, the purchase, sale and cultivation of the drug there will all become legal.