Article 2
1. Member States shall submit their action programmes for the first and second year of application of Regulation (EC) No 723/97 before the end of the second month following the date of entry into force of this Regulation. Only expenditure committed after 1 January 1997 is eligible for co-finance by the Community. Estimates shall be drawn up in accordance with the table in the Annex. 2. Within three months of receiving the action programmes, the Commission shall, on the basis of the information given, set, in each Member State's national currency, the maximum amount of the Community's financial contribution. The Commission shall inform the Member States in question of any expenditure which is not accepted for Community financing, and of the reasons therefore. 3. Not later than 31 May each year, each Member State shall present the Commission with a statement of the expenditure incurred during the previous calendar year. The Community's financial participation rate set as provided in Article 4 (2) of the abovementioned Regulation shall apply to this expenditure, limited to the amounts presented in the action programmes and not considered ineligible by the Commission. This statement shall be drawn up in accordance with the table in the Annex.