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

Portugal

€4bn
10-year exposure, Medium scenario
€2.9bn
One-off migration cost, Medium
€96m/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 €281 €756 €1,353
Effect on the real GDP level -€4 -€18 -€40

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €48m €240m €481m
Medium €96m €479m €958m
Broad €172m €862m €1.7bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €930m
Medium €2.9bn
Broad €5.1bn

Ordinary public support

€ million, public sector

Narrow €1m
Medium €10m
Broad €33m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.8m
Medium €9.5m
Broad €38m

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
€109m
Medium – annual value added at risk
€249m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €2.4m
Medium €30m
Broad €101m