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

France

€16.2bn
10-year exposure, Medium scenario
€11.1bn
One-off migration cost, Medium
€408m/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 €155 €534 €1,119
Effect on the real GDP level -€9 -€36 -€81

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €158m €792m €1.6bn
Medium €408m €2bn €4.1bn
Broad €833m €4.2bn €8.3bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €2.8bn
Medium €11.1bn
Broad €23.2bn

Ordinary public support

€ million, public sector

Narrow €1.9m
Medium €19m
Broad €60m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €2.9m
Medium €45m
Broad €197m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

7
Narrow – vendor equivalents affected
28
Medium – vendor equivalents affected
64
Broad – vendor equivalents affected
€136m
Narrow – annual value added at risk
€536m
Medium – annual value added at risk
€1.2bn
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €28m
Medium €339m
Broad €1.1bn