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

EU-wide

Asymmetric impact across the EU

The Cloud and AI Development Act (CADA) functions as an asymmetric economic penalty that benefits dominant regional cloud vendors at the expense of open, highly digitised Member States.

  • Larger economies like Germany and France absorb minor incremental shocks because their public sectors already operate under legacy national frameworks.
  • In contrast, smaller Member States without pre-existing sovereignty restrictions face massive, net-new regulatory impacts: their open public and private digital sectors rely heavily on global cloud infrastructure and international software inputs.

Cost per worker

Beyond country size: comparing cost per worker

To compare national impacts fairly across economies of different sizes, this map divides each Member State’s 10-year total economic bill by its working-age labour force. Hover over any Member State on the map to view its estimated financial exposure across all three scenarios (Narrow, Medium, Broad). Select a country to open its national impact report.

Scenario

Cost per worker: 10-year total bill divided by the working-age labour force (economically active persons aged 20–64). Source: ECIPE calculations.