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

Malta

€169m
10-year exposure, Medium scenario
€117m
One-off migration cost, Medium
€4.3m/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 €180 €518 €984
Effect on the real GDP level -€29 -€115 -€261

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €2m €10m €20m
Medium €4.3m €22m €43m
Broad €8.1m €40m €81m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €35m
Medium €117m
Broad €221m

Ordinary public support

€ million, public sector

Narrow €0.1m
Medium €0.9m
Broad €3m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €<0.1m
Medium €0.4m
Broad €1.7m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

—
Narrow – vendor equivalents affected
1
Medium – vendor equivalents affected
2
Broad – vendor equivalents affected
€3.7m
Narrow – annual value added at risk
€15m
Medium – annual value added at risk
€33m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €0.2m
Medium €2m
Broad €6.6m