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

Italy

€12.8bn
10-year exposure, Medium scenario
€8.6bn
One-off migration cost, Medium
€338m/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 €143 €519 €1,122
Effect on the real GDP level -€5 -€18 -€42

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €126m €630m €1.3bn
Medium €338m €1.7bn €3.4bn
Broad €701m €3.5bn €7bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €2bn
Medium €8.6bn
Broad €18.8bn

Ordinary public support

€ million, public sector

Narrow €1.5m
Medium €15m
Broad €47m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €2.2m
Medium €37m
Broad €164m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

6
Narrow – vendor equivalents affected
23
Medium – vendor equivalents affected
55
Broad – vendor equivalents affected
€118m
Narrow – annual value added at risk
€464m
Medium – annual value added at risk
€1.1bn
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €17m
Medium €214m
Broad €706m