The European Union (EU) is one of the largest providers of budget support aid to developing countries. However today, EU budget support stands at a crossroads, despite being described by the European consensus on development as the ‘preferred aid modality’. While some EU Member States remain strong supporters of budget support, a growing number have started to question the instrument and its effectiveness.

In December 2010, the European Commission launched a debate on “the future of EU budget support.” Proposals from the Commission on the future of EU budget support are expected in October 2011 and Member States are expected to adopt conclusions on the issue by the end of the year. This process will decide what EU budget support will look like in the next 5 years.

Presentations by the Overseas Development Institute (ODI) and the World Bank on their latest research and evidence on budget support were followed by a high-level debate, chaired by Simon Maxwell, ODI Senior Research Associate.

Panellists will be asked to answer the debate questions and to comment on:

1. Doesbudgetsupportdeliverdevelopmentresults?  Whatkind of results?
2. Whatarethebenefitsofbudgetsupportin fostering domesticaccountability and how can they be strengthened?
3. What are the right criteria for allocating budget support (notably in fragile states)?
4. Politicaldialogue.How to react to human rights breaches?
5. Should thepoliticaldialogueapplyto just budget support or to all aid instruments?