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

Cyprus

€255m
10-year exposure, Medium scenario
€171m
One-off migration cost, Medium
€6.9m/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 €163 €508 €1,020
Effect on the real GDP level -€93 -€367 -€833

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €3.1m €15m €31m
Medium €6.9m €35m €69m
Broad €13m €67m €134m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €46m
Medium €171m
Broad €345m

Ordinary public support

€ million, public sector

Narrow €0.1m
Medium €0.9m
Broad €3m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €<0.1m
Medium €0.7m
Broad €2.9m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

—
Narrow – vendor equivalents affected
—
Medium – vendor equivalents affected
1
Broad – vendor equivalents affected
€2.7m
Narrow – annual value added at risk
€11m
Medium – annual value added at risk
€25m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €0.2m
Medium €3m
Broad €10m