UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number 811-4632

European Equity Fund, Inc.

(Exact name of registrant as specified in charter)

 

Two International Place

Boston, MA 02110

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 454-7190

Date of fiscal year end: 12/31

Date of reporting period: 03/31/06

Form N-Q is to be used by registered management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-4). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

 

THE EUROPEAN EQUITY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2006 (unaudited)

 

 

 

Shares

Description

Value

INVESTMENTS IN GERMAN

SECURITIES - 27.3%

 

COMMON STOCKS - 26.0%

AUTOMOBILES - 3.5%

84,000

DaimlerChrysler

$      4,825,699

 

CHEMICALS - 1.0%

17,200

K + S

        1,388,370

ELECTRIC UTILITIES - 3.3%

41,000

E.ON

        4,512,531

ELECTRICAL EQUIPMENT - 0.9%

4,500

Solarworld

1,182,427

ELECTRONIC EQUIPMENT &

INSTRUMENTS - 1.5%

17,000

Wincor Nixdorf

        2,142,816

INDUSTRIAL

CONGLOMERATES - 3.3%

48,100

Siemens

        4,491,216

INDUSTRIAL GASES - 1.2%

19,000

Linde

        1,649,956

INSURANCE - 1.1%

40,500

Hannover Rückversicherungs†

        1,502,522

MACHINERY - 0.9%

17,000

Rheinmetall

        1,318,656

REAL ESTATE - 3.1%

62,500

Hypo Real Estate Holding

        4,285,178

SOFTWARE - 3.5%

22,000

SAP

        4,773,123

TEXTILES, APPAREL & LUXURY GOODS - 2.7%

18,600

Adidas Salomon

        3,678,825

Total Common Stocks

 

(cost $18,671,667)

      35,751,319

 

PREFERRED STOCKS - 1.3%

HEALTHCARE PROVIDERS & SERVICES - 1.3%

10,000

Fresenius

 

 

(Cost $979,732)

        1,793,760

Total Investments in

German Securities

 

(cost $19,651,399)

      37,545,079

 

 

 

Shares

Description

Value

INVESTMENTS IN AUSTRIAN

COMMON STOCKS - 4.4%

COMMERCIAL BANKS - 1.0%

21,750

Wiener Staedt Vers.

$      1,344,411

 

 


 

CONSTRUCTION

MATERIALS - 1.0%

28,300

Wienerberger Ag

        1,423,433

INSURANCE - 2.4%

50,000

Uniqa Versicherungen

        1,621,050

Total Investments in

Austrian Common Stocks

 

(cost $3,789,263)

        4,388,894

INVESTMENTS IN DUTCH

COMMON STOCKS - 1.3%

FOOD & STAPLES

RETAILING - 1.3%

40,000

Koninklijke Numico Nv*

 

 

(Cost $1,678,782)

        1,770,005

INVESTMENTS IN FRENCH

COMMON STOCKS - 28.3%

AIRLINES - 1.9%

40,000

Zodiac SA*

        2,596,104

BEVERAGES - 2.2%

15,800

Pernod-Ricard

        3,027,552

CONSTRUCTION

MATERIALS - 2.5%

50,000

Compagnie De Saint-Gobain

        3,493,590

ENERGY EQUIPMENT &

SERVICES - 1.5%

29,800

Technip-Coflexip S.A.

        2,017,168

INDUSTRIAL

CONGLOMERATES - 1.6%

20,000

Neopost SA

        2,174,328

INSURANCE - 3.5%

93,100

Axa

        3,267,765

15,000

Cnp Assurances

        1,512,576

        4,780,341

METALS & MINING - 1.5%

2,100

Vallourec

        2,028,524

NATIONAL COMMERCIAL

BANKS - 3.8%

35,000

Societe Generale

        5,264,322

 

 


 

 

THE EUROPEAN EQUITY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2006 (unaudited) (continued)

 

 

 

Shares

Description

Value

 

 

OIL, GAS & CONSUMABLE FUELS - 4.9%

25,400

Total

$      6,701,851

SPECIALTY RETAIL - 1.3%

20,700

Essilor International

        1,846,506

TELECOMMUNICATIONS SERVICES - 2.0%

122,000

France Telecom SA

        2,744,356

TEXTILES, APPAREL & LUXURY GOODS - 1.6%

22,000

Lvmh Moet Hennessy Loui V Sa

        2,157,118

Total Investments in

French Common Stocks

 

(cost $34,555,018)

      38,831,760

INVESTMENTS IN SWEDISH

COMMON STOCKS - 2.6%

COMMUNICATIONS

EQUIPMENT - 2.6%

940,000

Ericsson

 

 

(Cost $3,151,495)

        3,578,557

INVESTMENTS IN ITALIAN

COMMON STOCKS - 14.1%

COMMERCIAL BANKS - 9.0%

800,000

Banca Intesa Spa†

4,775,280

 

60,000

Banca Italease*

2,972,067

 

548,000

Capitalia Spa

        4,556,247

      12,303,594

ENERGY EQUIPMENT & SERVICES - 1.4%

84,000

Saipem†

        1,941,478

HEALTHCARE PROVIDERS & SERVICES - 1.1%

17,000

Amplifon Spa

        1,486,991

INSURANCE - 2.6%

70,000

Assicurazioni Generali†

2,636,827

 

150,000

Ergo Previdenza Spa†

          961,722

3,598,549

Total Investments in

Italian Common Stocks

 

(cost $13,658,716)

      19,330,612

 

 

 

Shares

Description

Value

INVESTMENTS IN SWISS

COMMON STOCKS - 6.4%

DIVERSIFIED CONSUMER SERVICES - 1.3%

1,900

Sgs SA†

$      1,759,718

 

 


 

ELECTRICAL DISTRIBUTION - 1.1%

117,000

Abb Ltd*

        1,475,619

HEALTHCARE EQUIPMENT &

SUPPLIES- 1.0%

6,000

Nobel Biocare Holding Ag

        1,335,199

INSURANCE - 1.2%

24,000

Baloise Holding -R

        1,710,343

NATIONAL COMMERCIAL

BANKS - 0.9%

22,000

Credit Suisse Group

        1,233,842

TEXTILES, APPAREL & LUXURY GOODS - 0.9%

7,500

The Swatch Group Ag-B

        1,258,721

Total Investments in

Swiss Common Stocks

 

(cost $7,630,853)

        8,773,442

 

INVESTMENTS IN FINNISH

Common Stocks — 0.9%

PAPER MILLS - 0.9%

50,000

Upm-Kymene Oyj

 

 

(Cost $1,182,796)

        1,181,700

 

INVESTMENTS IN SPANISH

Common Stocks — 3.2%

COMMERCIAL BANKS - 1.9%

126,100

Banco Bilbao Vizcaya Argentaria

        2,631,788

 

COMMUNICATIONS

EQUIPMENT - 1.3%

90,000

Indra Sistemas SA

        1,830,362

 

Total Investments in

Spanish Common Stocks

 

(cost $3,945,461)

        4,462,150

 

INVESTMENTS IN NORWEGIAN

Common Stocks — 3.1%

COMMERCIAL BANKS - 1.0%

110,000

Sparebanken Midt-Norge

        1,321,309

 

 


 

THE EUROPEAN EQUITY FUND, INC.

SCHEDULE OF INVESTMENTS — MARCH 31, 2006 (unaudited) (continued)

 

 

Shares

Description

Value

 

 

DIVERSIFIED FINANCIAL SERVICES - 0.7%

32,000

Sparebanken Rogaland†

$        990,848

OIL, GAS & CONSUMABLE FUELS - 1.4%

69,000

Statoil Asa

        1,989,170

 

Total Investments in

Norwegian Common Stocks

 

(cost $3,765,029)

        4,301,327

INVESTMENTS IN LUXEMBOURG

COMMON STOCKS - 1.4%

ENERGY EQUIPMENT & SERVICES - 1.4%

 

121,000

Stolt Offshore SA*

 

(Cost $1,249,871)

        1,901,007

INVESTMENTS IN BELGIAN

COMMON STOCKS - 1.5%

METALS & MINING - 1.5%

15,000

Umicore

 

 

(Cost $1,828,961)

        2,077,974

INVESTMENTS IN GREEK

COMMON STOCKS - 3.9%

COMMERCIAL BANKS - 1.2%

43,000

Efg Eurobank

        1,656,246

DIVERSIFIED FINANCIAL SERVICES - 1.0%

85,000

Hellenic Exchanges SA

        1,339,260

 

DIVERSIFIED TELECOMMUNICATION SERVICES - 1.7%

110,000

Hellenic Telecommunications

 

 

Organization SA*

        2,431,757

Total Investments in

Greek Common Stocks

 

(cost $4,877,152)

        5,427,263

INVESTMENTS IN IRISH

COMMON STOCKS - 1.6%

COMMERCIAL BANKS - 1.6%

131,000

Anglo Irish Bank Corp Plc

 

 

(Cost $1,792,089)

        2,159,299

 

 

 

Shares

Description

Value

SECURITIES LENDING COLLATERAL - 7.8%

10,791,058

Daily Assets Fund

Institutional, 4.73%††

 

(cost $10,791,058)

$    10,791,058

Total Investments—106.6%

 

(cost $132,219,610)

$  146,520,127

 

 


 

Liabilities in excess of cash and

 

other assets—(6.6)%

      (9,082,692)

 

 

NET ASSETS-100.0%

$

137,437,435

 

 

 

 

*

Non-income producing security.

†

-All or a portion of these securities were on loan. The value of all securities loaned at March 31, 2006 amounted to $10,268,071 which is 7.47% of the net assets.

††

-Represents collateral held in connection with securities lending. Daily Assets Fund Institutional, an affiliated fund, is managed by Deutsche Asset Management, Inc. The rate shown is the annualized seven-day yield at period end.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant:

The European Equity Fund, a series of European Equity Fund, Inc.

 

 

By:

/s/Michael Colon

 

Michael Colon

 

President

 

Date:

May 19, 2006

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Registrant:

The European Equity Fund, a series of European Equity Fund, Inc.

 

 

By:

/s/Michael Colon

 

Michael Colon

 

President

 

Date:

May 19, 2006

 

 

 

By:

/s/Paul Schubert

 

Paul Schubert

 

Chief Financial Officer and Treasurer

 

Date:                                                 May 19, 2006