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

Hungary

€2.6bn
10-year exposure, Medium scenario
€1.7bn
One-off migration cost, Medium
€70m/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 €179 €542 €1,069
Effect on the real GDP level -€4 -€16 -€36

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €32m €159m €318m
Medium €70m €352m €704m
Broad €134m €670m €1.3bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €470m
Medium €1.7bn
Broad €3.4bn

Ordinary public support

€ million, public sector

Narrow €0.2m
Medium €1.5m
Broad €4.8m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.4m
Medium €6.6m
Broad €28m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
6
Medium – vendor equivalents affected
13
Broad – vendor equivalents affected
€28m
Narrow – annual value added at risk
€112m
Medium – annual value added at risk
€256m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €1.2m
Medium €16m
Broad €56m