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1.The Union contribution referred to in Article 1 is subject to the following conditions:
(a)the tests have been performed in accordance with the terms of the Commission Recommendation during the period referred to in Section II of the Annex thereto;
(b)the Member States have provided the Commission with the report referred to in Section III of the Annex to Commission Recommendation and within the deadline set out in that section;
(c)by 31 May 2013, the Member States have provided the Commission, in electronic form, with a financial report according to the format laid out in Annex III.
2.The Commission may reduce the amount of the contribution referred to in Article 1 in cases where the conditions referred to in paragraph 1 are not met, having regard to the nature and gravity of the non-compliance and to the potential financial loss for the Union.