The new legislation will limit the amount of cannabis young adults can buy to 30 grams a month, compared to 50 grams for older adults.
Scholz's government had already watered down original plans to allow the widespread sale of cannabis in licensed shops after consultations with Brussels.
Instead, it said would launch a pilot project for a small number of licensed shops in some regions to test the effects of a commercial supply chain of recreational cannabis over five years.
Malta became the first European country to allow limited cultivation and possession of cannabis for personal use in late 2021.
The legislation presented on Wednesday includes strict rules for growing weed - cannabis clubs of up to 500 associates must have burglar-proof doors and windows, with greenhouses fenced off.
Persons:
Lisi Niesner, Chancellor Olaf Scholz, Karl Lauterbach, Lauterbach, Armin Schuster, Kristine Luetke, Sarah Marsh, Andreas Rinke, Angus MacSwan, Bernadette Baum
Organizations:
REUTERS, Rights, Scholz's Social Democrats, Free Democrats, Thomson
Locations:
Brandenburg, Berlin, Germany, Europe, Saxony, Brussels, Netherlands, Switzerland, Malta