The landmark move is expected to be followed by more European countries.
Malta has become the first EU country to legalise the cultivation and personal use of cannabis.
Equality Minister, Owen Bonnici, said the "historic" move would stop small-time cannabis users from facing the criminal justice system, and would "curb drug trafficking by making sure that [users] now have a safe and regularised way from where they can obtain cannabis".
The punishment for smoking in public will be a €235 fine, and those smoking cannabis in front of anyone younger than 18 could be fined up to €500.
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