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

Slovakia

€1.2bn
10-year exposure, Medium scenario
€827m
One-off migration cost, Medium
€34m/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 €131 €460 €974
Effect on the real GDP level -€3 -€11 -€25

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €13m €64m €128m
Medium €34m €168m €335m
Broad €69m €345m €689m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €201m
Medium €827m
Broad €1.8bn

Ordinary public support

€ million, public sector

Narrow €0.2m
Medium €1.5m
Broad €4.8m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.2m
Medium €3.4m
Broad €15m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
2
Medium – vendor equivalents affected
5
Broad – vendor equivalents affected
€11m
Narrow – annual value added at risk
€45m
Medium – annual value added at risk
€103m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €0.9m
Medium €12m
Broad €41m