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Alcohol may be purchased by people 16 years and older. However distilled beverages and mixed drinks with those (including the popular 'Alcopops') are available only from 18 years on. It's not technically illegal for younger people to drink, but it's illegal to allow them to drink on premises. If the police notices, they may pick the person up, confiscate the drinks and send the person home in the presence of an officer.
Smoking is allowed from 18 years on. Vending machines for cigarettes will now require a valid "proof of age" to use them, which in practice means that you'll need a German bank card or a (European) driving license to use them.
The situation on marijuana is a bit confusing. The Constitutional Court ruled that possession for "personal use", though still illegal, should not be prosecuted. Germany is a federal state therefore the interpretation of this ruling is up to the state authorities. In fact charges are sometimes pressed even for tiny amounts, which will cause you a lot of trouble regardless of the outcome. As a general rule the northern states tend to be more liberal while in the south (especially Bavaria) even negligible amounts are considered illegal. The customs officials are also aware of the fact that you can legally buy marijuana in the Netherlands and therefore set-up regular border controls as the import is strictly prohibited.
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Even if you get off the charges the authorities may cause different problems, like revoking your drivers licences etc. and if you have more than a few grams you will be prosecuted in any case. Also the drugs will be confiscated in all cases.
All other recreational drugs (e.g. ecstasy) will definitely lead to prosecution and earn you at least a police record.
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