This short paper is a contribution to a public consultation on the European Commission's green paper on budget support to third countries in December 2010.

The Green Paper implies the need for robust entry criteria for the provision of budget support: to minimise risks of aid funds being diverted or misused, and to ensure that there is a robust partnership of trust; to mitigate the chances of the need for political conditions to be applied; and to ensure that policy and political dialogue are worthwhile. The Green Paper implies that budget support should only be provided under exceptional circumstances, with the need for conditions also to be very exceptional. The paper reflects growing nervousness about the impact and use of budget support based on 10 years and more of experience. With this the evidence available to re-evaluate the theory of budget support is growing.