Summary The proposed Cloud and AI Development Act (CADA) would fundamentally shift how the EU public sector manages software spend by prioritizing reuse over redundant procurement. As proposed in Article 41, the Union and Member States must encourage the use of open standards and open-source components to ensure the "efficient, transparent and interoperable use of digital technologies." Crucially, Article 42 would mandate that any Union entity or public-sector body making software available for reuse must do so via a catalogue connected to the EU Open Source Solutions Catalogue. This framework directly targets the waste caused by fragmented repositories, aiming to "maximise the value of public expenditure" and "reduce duplication costs" as stated in Recital 83. By centralizing access to existing solutions, CADA would prevent public bodies from independently developing identical tools, thereby driving efficiency and reducing IT waste.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, identifies the fragmentation of software development across the EU public sector as a significant source of inefficiency and waste. The proposal establishes a legal framework to transform this landscape by institutionalizing the reuse of software and the adoption of open-source solutions. This approach is not merely a technical preference but a strategic mechanism to safeguard public funds and enhance the Union's digital autonomy.

The Legislative Mandate for Efficiency and Reuse

The core of CADA's waste-reduction strategy lies in Title IV, Chapter V, which specifically addresses open source. Article 41 establishes the principle of "open source first" for public-sector bodies. It requires the Union and Member States to take necessary measures to "encourage Union entities and public sector bodies to use and facilitate the reuse of open standards and components released under an open source licence."

The proposal explicitly links this encouragement to the "efficient use of digital technologies." When selecting solutions, public bodies must consider functionalities, including security and "total cost," alongside other "relevant, duly justified objective criteria." This provision ensures that the decision to use open source is driven by value and efficiency rather than ideology. By prioritizing open standards, the proposal aims to limit the risk of vendor lock-in, which Recital 81 identifies as a key factor in reducing dependency on a single vendor and fostering collaboration.

Eliminating Duplication Through Centralized Reuse

A primary driver of IT waste in the public sector is the "reinvention of the wheel," where multiple entities develop similar software solutions in isolation. Article 42 directly addresses this by creating a mandatory pipeline for software reuse. It stipulates that when a Union entity or public-sector body makes software available for reuse under an open-source licence, it "shall do so using a catalogue or repository that is connected to, and made accessible through, the EU Open Source Solutions Catalogue."

This requirement ensures that software developed with public funds does not remain siloed. Recital 83 provides the legislative rationale, noting that while many entities share software, it is often "made available and accessible in different repositories, hampering searchability, discoverability and, ultimately, reuse." The recital explicitly states that connecting these repositories to a central catalogue is necessary to "maximise the value of public expenditure, reduce duplication costs and foster innovation across the Union."

By mandating this connection, CADA would create a single point of truth for reusable public-sector software. This prevents procurement officers from commissioning new developments when a suitable, existing solution is already available elsewhere in the Union.

The EU Open Source Solutions Catalogue as an Efficiency Tool

To operationalize these obligations, Article 43 establishes the EU Open Source Solutions Catalogue. The Commission is tasked with providing and maintaining this centralised catalogue, which will be hosted on the Interoperable Europe portal. The catalogue is designed to be "accessible electronically free of charge," removing financial barriers to discovery.

The catalogue serves as the critical infrastructure for the "efficient use of digital technologies." By aggregating software from various national and EU-level repositories, it ensures that solutions are findable and accessible. This directly supports the goal of reducing waste by allowing procurement officers to verify the existence of a solution before initiating a new tender. The Commission is empowered to decide on requests from entities to connect their repositories to the catalogue, ensuring a comprehensive and up-to-date inventory of available tools.

The OSPO Network: Ensuring Consistent Implementation

To support the practical application of these rules, Article 44 establishes a network of Open Source Programme Offices (OSPOs). This network brings together structures within Union entities and Member States to facilitate cooperation on the implementation of open-source obligations.

The OSPO network has specific tasks aimed at efficiency:

  • Facilitating the exchange of information, experience, and best practices regarding licensing, security, and procurement.
  • Promoting the sharing and reuse of open-source software.
  • Contributing to the development of guidance and templates for sharing software.

This collaborative framework helps public bodies navigate the legal and technical complexities of open source, reducing the administrative burden that often hinders reuse. By standardizing approaches across the Union, the OSPO network ensures that the efficiency gains envisioned by CADA are realized in practice.

Legislative Intent: Transparency, Security, and Value

The recitals of the proposal provide the strategic context for these measures. Recital 81 emphasizes that open source plays an "important role in ensuring transparency, security and efficiency." It notes that access to source code enables auditability and "reduces dependency on a single vendor, thereby limiting the risk of vendor lock-in." The recital concludes that promoting open source is "essential to support innovation, ensure better value for public expenditure and strengthen the Union's digital autonomy."

Recital 83 further reinforces the economic argument. It highlights that the current fragmentation of software repositories "hamper[s] searchability, discoverability and, ultimately, reuse." By requiring connection to the EU OSS Catalogue, the proposal aims to "maximise the value of public expenditure" and "reduce duplication costs." This legislative intent makes it clear that CADA views software reuse not just as a technical best practice, but as a fiscal imperative to reduce waste in the public sector.

What this means for you

For public-sector bodies, procurement officers, and IT managers, the proposed CADA introduces a new compliance landscape focused on efficiency and reuse:

  • Mandatory Reuse Checks: Before initiating a procurement for new software, you would be required to check the EU Open Source Solutions Catalogue and connected repositories. If a suitable solution exists, you must prioritize its reuse over developing or procuring a new proprietary alternative.
  • Obligation to Share: If your organization develops custom software and holds the intellectual property rights, you would be legally required to make it available for reuse under an open-source licence via a connected catalogue. This transforms internal projects into public assets.
  • Total Cost of Ownership: When evaluating tenders, you must consider "total cost" and security as primary criteria. The proposal encourages using open-source components to reduce long-term vendor dependency and ensure better value for money.
  • Engage with OSPOs: Organizations should establish or engage with Open Source Programme Offices to stay compliant with the new sharing obligations and to access best practices for managing open-source software.

Common misconceptions

"CADA forces all public bodies to use only open source." No. Article 41 states that the Union and Member States shall "encourage" the use of open source, taking into account "other relevant, duly justified objective criteria." While reuse is mandated for software developed by the public sector, procurement officers can still choose proprietary solutions if justified by security, functionality, or total cost considerations. The goal is efficiency, not ideological purity.

"Open source is always free of charge." While the software itself may be free to download, CADA focuses on reducing duplication costs and long-term vendor lock-in. Implementation, customization, and support still require investment. The efficiency gain comes from sharing these costs across the Union rather than each body paying for independent development.

"Reusing software is a burden." While connecting to the catalogue requires initial effort, the long-term benefits include reduced development costs, faster deployment, and shared maintenance. The EU OSS Catalogue and the OSPO network are specifically designed to make reuse easier and more efficient, not harder.

Related

This is general information about a draft EU regulation, not legal advice.