Summary The proposed Cloud and AI Development Act (CADA) does not establish a body titled the "EuroCloud Steering Committee." This is a common terminological conflation. The proposal creates two distinct governance mechanisms: the EuroCloud Federation (Article 34), a voluntary platform for sharing cloud capacity governed directly by the Commission, and the Steering Committee (Article 38), a strategic oversight body for the common procurement framework. The Steering Committee, composed of the Commission and Member State representatives, is responsible for the strategic direction of joint procurement activities and the conditions for accession, but explicitly not for setting fees or managing daily operations. Crucially, this Steering Committee is legally distinct from the comitology committee under Article 46, which assists the Commission in adopting delegated and implementing acts for the entire Regulation.

Detail

Clarifying the Terminology: No "EuroCloud Steering Committee"

In early stakeholder discussions and draft analyses, the term "EuroCloud Steering Committee" frequently appears. However, a strict reading of the CADA proposal (COM(2026) 502 final) reveals that no such entity exists. The proposal establishes two separate governance structures that serve different purposes within the cloud and AI ecosystem:

  1. The EuroCloud Federation: Established under Article 34, this is a voluntary federation designed to facilitate the sharing of data centre services and cloud computing services between Union entities and public sector bodies. The governance of this federation is centralized: the Commission establishes the platform (Article 34(3)), assesses requests to join (Article 35), and manages the administrative fees (Article 36). There is no "Steering Committee" mandated for the Federation itself.
  2. The Common Procurement Steering Committee: Established under Article 38, this body is specific to the common procurement framework. It oversees the Commission's role as a central purchasing body for Union entities and Member States.

When references are made to a "EuroCloud Steering Committee," they invariably refer to the Steering Committee mandated by Article 38 for the common procurement framework. The following analysis details this specific body, its powers, and its critical distinctions from other CADA governance mechanisms.

Composition and Establishment

Under Article 38(4) of the CADA proposal, the agreement establishing the common procurement framework must include the establishment of a Steering Committee. The composition is strictly defined to ensure high-level political and administrative oversight:

  • The Commission: Represents the EU executive and acts as the central purchasing body.
  • Member State Representatives: One representative from each participating Member State at the national level.

Article 38(4) further provides flexibility for broader representation. It states that the Steering Committee "may appoint additional representatives of other Union entities, of contracting authorities of Member States and of partner organisations selected by the Commission." This mechanism allows specific end-users (e.g., a national ministry or a specific agency) to participate in strategic discussions without necessarily being the primary signatories to the initial framework agreement.

Strategic Oversight vs. Operational Management

The CADA proposal draws a sharp, legally binding line between strategic governance and operational execution. Recital 78 provides the definitive interpretation of this division of labour:

"The committee is responsible for strategic oversight of the procurement activities, including the strategic guidance of the agenda of public procurement activities and of each procurement procedure. The steering committee should also oversee the involvement of participating entities. The steering committee should not be responsible for the operations of procurement activities, which should remain the responsibility of the Commission, including the setting of fees."

This distinction is vital for in-house counsel and compliance officers. The Steering Committee does not manage day-to-day procurement operations, draft technical specifications, negotiate contracts directly, or set the specific fee amounts. Those operational tasks remain the sole responsibility of the Commission. The Steering Committee's role is strictly supervisory and directional, ensuring that the procurement agenda aligns with the broader objectives of the Regulation.

Key Responsibilities of the Steering Committee

The Steering Committee's mandate, derived from Article 38(5) and Recital 78, encompasses several critical strategic functions:

  1. Strategic Direction of the Procurement Agenda: The Committee is responsible for proposing the strategic direction of the procurement agenda for a fixed period. This ensures that joint procurement efforts align with the broader EU cloud and AI sovereignty objectives and the specific needs of the participating entities.
  2. Approval of Individual Procedures: Before the Commission launches any specific procurement procedure, the Steering Committee must approve its strategic direction. Article 38(5) mandates that the Committee approves "the strategic direction of each procurement procedure before it is launched by the Commission, to ensure its compliance with the framework established by this Regulation."
  3. Oversight of Participating Entities: The Committee oversees the involvement of entities participating in the joint procurement, ensuring that the participation rules are applied consistently.
  4. Accession Conditions: Under Article 38(8), the Steering Committee sets "transparent and non-discriminatory conditions for contracting authorities of Member States to accede to the agreement." This includes criteria related to size, minimum amounts, and other objective metrics.
  5. Termination Rules: The Committee also establishes rules and procedures governing the termination of participation for a contracting authority that fails to comply with its obligations under the agreement (Article 38(8)).

Fees and Financial Governance

A critical area of potential confusion concerns the financial governance of the common procurement framework. Article 40 establishes that the costs arising from procurement activities are jointly financed by participating entities through fees levied by the Commission.

While the Commission is responsible for the setting of fees, Recital 78 explicitly clarifies the Steering Committee's limited role in this domain:

"The steering committee should not be responsible for the operations of procurement activities, which should remain the responsibility of the Commission, including the setting of fees."

However, the Committee's strategic oversight ensures that the fee structure remains aligned with the operational needs and strategic goals of the procurement activities. The fees are designed to cover direct and indirect costs incurred by the Commission, including the development of the common procurement platform and ancillary services. Revenues from these fees constitute internal assigned revenues under the EU Financial Regulation (Article 40(3)). The Commission must adopt implementing acts to lay down detailed rules for determining these fees (Article 40(5)), a process that involves the comitology procedure, not the Steering Committee.

Distinction from the Comitology Committee (Article 46)

A frequent and significant point of confusion is the relationship between the Steering Committee (Article 38) and the Committee referred to in Article 46. These are two entirely different bodies with different legal bases, compositions, and functions.

  • The Steering Committee (Article 38):

    • Nature: A governance body specific to the common procurement framework.
    • Composition: The Commission and representatives of participating Member States (and potentially other entities).
    • Mandate: Strategic oversight of procurement activities (agenda setting, procedure approval, accession conditions).
    • Legal Basis: Article 38 of the CADA proposal.

  • The Comitology Committee (Article 46):

    • Nature: A standard EU regulatory committee established under Regulation (EU) No 182/2011.
    • Composition: Representatives of Member States (typically at a technical or regulatory level), chaired by the Commission.
    • Mandate: Assisting the Commission in adopting delegated and implementing acts. This includes reviewing technical regulatory measures such as the detailed rules for fees (Article 40(5)), the criteria for Union assurance levels (Article 16), or the methodology for risk assessments (Article 29).
    • Legal Basis: Article 46 of the CADA proposal.

In short, the Steering Committee governs how the EU buys cloud services jointly (strategy), while the Comitology Committee governs how the Commission adopts the technical rules that underpin the entire CADA framework (regulation).

What this means for you

For in-house counsel, compliance officers, and public procurement specialists, understanding the precise role of the Steering Committee has several practical implications:

  1. Strategic Alignment: If your organisation is a participating entity in the common procurement framework, you must ensure that your procurement needs align with the strategic direction set by the Steering Committee. Divergence from this strategic agenda may result in your specific procurement requests not being prioritised or included in joint tenders.
  2. Accession Compliance: The Steering Committee sets the conditions for accession (Article 38(8)). You must monitor these conditions, which may include minimum spending thresholds or specific compliance requirements, to ensure your organisation remains eligible to participate in joint procurement.
  3. Fee Structure Awareness: While the Commission sets fees, the Steering Committee's oversight ensures that these fees are proportionate to the costs incurred. You should budget for these fees as part of your total cost of ownership for cloud and AI services, as they are a mandatory component of participating in the joint framework. Note that the specific fee calculation rules will be subject to the comitology procedure under Article 46, not the Steering Committee.
  4. Termination Risks: The Steering Committee establishes rules for terminating participation in case of non-compliance. Ensure that your organisation's contractual and operational compliance with the common procurement agreement is robust to avoid exclusion from future joint procurement opportunities.
  5. Representation Strategy: If your organisation is a significant contracting authority, consider advocating for representation on the Steering Committee (or its sub-groups) to influence the strategic procurement agenda. This can help shape the technical specifications and sovereignty criteria for future cloud and AI procurements.

Common misconceptions

"The EuroCloud Steering Committee governs the EuroCloud Federation." Correction: There is no such body. The EuroCloud Federation is governed by the Commission, which assesses membership applications and manages the sharing platform. The Steering Committee governs joint procurement, not capacity sharing.

"The Steering Committee sets the fees for joint procurement." Correction: Recital 78 explicitly states that the Steering Committee is not responsible for setting fees. The Commission sets fees, subject to the strategic oversight of the Committee. The detailed rules for these fees are adopted via implementing acts under the comitology procedure (Article 46).

"The Steering Committee is the same as the Comitology Committee." Correction: They are distinct bodies. The Steering Committee (Article 38) oversees procurement strategy and is composed of participating Member State representatives. The Comitology Committee (Article 46) assists in adopting regulatory acts and is composed of Member State representatives in a regulatory capacity. They have different compositions, mandates, and legal bases.

"The Steering Committee manages day-to-day procurement operations." Correction: Recital 78 clarifies that operational management remains the responsibility of the Commission. The Steering Committee's role is strategic oversight and approval of the strategic direction of procedures.

Related

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