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

Netherlands

€6.9bn
10-year exposure, Medium scenario
€4.9bn
One-off migration cost, Medium
€159m/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 €289 €762 €1,345
Effect on the real GDP level -€26 -€103 -€233

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €82m €412m €824m
Medium €159m €797m €1.6bn
Broad €281m €1.4bn €2.8bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €1.6bn
Medium €4.9bn
Broad €8.4bn

Ordinary public support

€ million, public sector

Narrow €1.2m
Medium €12m
Broad €38m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €1.3m
Medium €16m
Broad €61m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

4
Narrow – vendor equivalents affected
16
Medium – vendor equivalents affected
37
Broad – vendor equivalents affected
€78m
Narrow – annual value added at risk
€308m
Medium – annual value added at risk
€702m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €9.6m
Medium €117m
Broad €377m