ECIPE — European Centre for International Political Economy

A study by ECIPE

Cloud and AI Development Act (CADA)

The real-world economic impact of the Cloud and AI Development Act

Impact by country

Belgium

€3.7bn
10-year exposure, Medium scenario
€2.5bn
One-off migration cost, Medium
€93m/yr
Recurring price effect, Medium

Cost per person in the working-age labour force

Per economically active person (age 20–64), 10-year horizon

Measure Narrow Medium Broad
10-year total economic exposure €248 €709 €1,339
Effect on the real GDP level -€18 -€72 -€164

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €45m €224m €448m
Medium €93m €467m €934m
Broad €173m €863m €1.7bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €772m
Medium €2.5bn
Broad €4.8bn

Ordinary public support

€ million, public sector

Narrow €0.7m
Medium €6.7m
Broad €21m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.7m
Medium €9m
Broad €37m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

2
Narrow – vendor equivalents affected
7
Medium – vendor equivalents affected
15
Broad – vendor equivalents affected
€32m
Narrow – annual value added at risk
€127m
Medium – annual value added at risk
€290m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €6.3m
Medium €77m
Broad €248m