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

Lithuania

€921m
10-year exposure, Medium scenario
€646m
One-off migration cost, Medium
€23m/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 €222 €620 €1,147
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 €11m €55m €110m
Medium €23m €115m €230m
Broad €42m €212m €424m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €200m
Medium €646m
Broad €1.2bn

Ordinary public support

€ million, public sector

Narrow €0.2m
Medium €2.2m
Broad €6.9m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.2m
Medium €2.2m
Broad €9.1m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
2
Medium – vendor equivalents affected
5
Broad – vendor equivalents affected
€9.6m
Narrow – annual value added at risk
€38m
Medium – annual value added at risk
€87m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €0.5m
Medium €6m
Broad €21m