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

Bulgaria

€1.5bn
10-year exposure, Medium scenario
€990m
One-off migration cost, Medium
€41m/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 €150 €509 €1,072
Effect on the real GDP level -€3 -€12 -€27

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €16m €81m €163m
Medium €41m €204m €409m
Broad €83m €414m €829m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €242m
Medium €990m
Broad €2.1bn

Ordinary public support

€ million, public sector

Narrow €0.1m
Medium €1.4m
Broad €4.3m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.3m
Medium €4.1m
Broad €18m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
5
Medium – vendor equivalents affected
12
Broad – vendor equivalents affected
€25m
Narrow – annual value added at risk
€99m
Medium – annual value added at risk
€225m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €0.8m
Medium €10m
Broad €35m