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

Germany

€16.2bn
10-year exposure, Medium scenario
€10.7bn
One-off migration cost, Medium
€438m/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 €96 €396 €905
Effect on the real GDP level -€14 -€55 -€126

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €149m €744m €1.5bn
Medium €438m €2.2bn €4.4bn
Broad €947m €4.7bn €9.5bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €2.2bn
Medium €10.7bn
Broad €24.7bn

Ordinary public support

€ million, public sector

Narrow €1.8m
Medium €18m
Broad €56m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €2.7m
Medium €49m
Broad €225m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

16
Narrow – vendor equivalents affected
62
Medium – vendor equivalents affected
141
Broad – vendor equivalents affected
€301m
Narrow – annual value added at risk
€1.2bn
Medium – annual value added at risk
€2.7bn
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €33m
Medium €401m
Broad €1.3bn