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

Romania

€4.2bn
10-year exposure, Medium scenario
€2.8bn
One-off migration cost, Medium
€118m/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 €150 €527 €1,126
Effect on the real GDP level -€2 -€10 -€22

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €46m €229m €459m
Medium €118m €590m €1.2bn
Broad €242m €1.2bn €2.4bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €666m
Medium €2.8bn
Broad €6.1bn

Ordinary public support

€ million, public sector

Narrow €0.3m
Medium €3.3m
Broad €10m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.7m
Medium €12m
Broad €53m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

2
Narrow – vendor equivalents affected
8
Medium – vendor equivalents affected
18
Broad – vendor equivalents affected
€39m
Narrow – annual value added at risk
€153m
Medium – annual value added at risk
€350m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €2.9m
Medium €37m
Broad €128m