CENTRAL EUROPEAN EQUITY FUND INC /MD/
DEF 14A, 1999-05-11
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                     THE CENTRAL EUROPEAN EQUITY FUND, INC.
                               31 West 52nd Street
                            New York, New York 10019

                              --------------------

                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

                                  June 7, 1999

                              --------------------


To our Stockholders:

      Notice is hereby  given that the Annual  Meeting  of  Stockholders  of The
Central  European  Equity Fund, Inc. (the "Fund") will be held at 3:00 P.M., New
York time, on June 7, 1999 at the offices of Deutsche Bank  Securities  Inc., 31
West 52nd Street, 5th Floor, New York, New York for the following purposes:

      1. To elect four Directors.

      2. To ratify the selection by the Board of Directors of
         PricewaterhouseCoopers  LLP as independent  accountants  for the fiscal
         year ending October 31, 1999.

      3. To transact  such other  business as may come before the meeting or any
         adjournment thereof.

      Only  holders of record of Common  Stock at the close of business on April
30,  1999  are  entitled  to  notice  of and to  vote  at  this  meeting  or any
adjournment thereof.

      If you have any  questions or need  further  information,  please  contact
Morrow & Co., Inc., the Fund's proxy solicitors,  at 909 Third Avenue, New York,
New York 10022, or 1-800-662-5200.

                                                         Robert R. Gambee
                                                         Chief Operating Officer
                                                         and Secretary

Dated: May 3, 1999

WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING,  PLEASE SIGN THE ENCLOSED PROXY
AND PROMPTLY RETURN IT TO THE FUND. IN ORDER TO AVOID THE ADDITIONAL  EXPENSE TO
THE FUND OF FURTHER  SOLICITATION,  WE ASK YOUR  COOPERATION  IN MAILING IN YOUR
PROXY PROMPTLY.
<PAGE>


                     THE CENTRAL EUROPEAN EQUITY FUND, INC.
                               31 West 52nd Street
                            New York, New York 10019

                         Annual Meeting of Stockholders
                                  June 7, 1999
 
                                 ---------------
                                 PROXY STATEMENT

                                 ---------------

      This proxy statement is furnished by the Board of Directors of The Central
European Equity Fund,  Inc. (the "Fund") in connection with the  solicitation of
proxies for use at the Annual Meeting of Stockholders (the "Meeting") to be held
at 3:00 P.M.,  New York time,  on June 7, 1999 at the offices of  Deutsche  Bank
Securities Inc., 31 West 52nd Street, 5th Floor, New York, New York. The purpose
of  the  Meeting  and  the  matters  to be  acted  upon  are  set  forth  in the
accompanying Notice of Annual Meeting of Stockholders.

      If the  accompanying  form of Proxy is  executed  properly  and  returned,
shares  represented  by it will be voted at the Meeting in  accordance  with the
instructions on the Proxy.  However,  if no instructions  are specified,  shares
will be voted FOR the  election of  Directors  and FOR the  ratification  of the
selection of independent  accountants.  A Proxy may be revoked at any time prior
to the time it is voted by  written  notice  to the  Secretary  of the Fund or a
subsequently  executed  proxy,  or by  attendance  at the  Meeting and voting in
person.

      The close of  business on April 30, 1999 has been fixed as the record date
for the determination of stockholders entitled to notice of, and to vote at, the
Meeting.  On  that  date,  the  Fund  had  10,397,695  shares  of  Common  Stock
outstanding  and  entitled  to vote.  Each share will be entitled to one vote on
each matter that comes  before the  Meeting.  It is expected  that the Notice of
Annual  Meeting,  Proxy  Statement  and form of Proxy  will  first be  mailed to
stockholders on or about May 3, 1999.

      The  Board of  Directors  of the Fund has  nominated  four  Directors  for
election  at  the  Meeting   (Proposal  1)  and   approved   the   selection  of
PricewaterhouseCoopers LLP as independent accountants to the Fund for the fiscal
year ending  October 31,  1999,  for  ratification  by the  stockholders  at the
Meeting (Proposal 2).

      The Fund  intends  to treat  properly  executed  proxies  that are  marked
"abstain" and broker  non-votes  (defined  below) as present for the purposes of
determining  whether a quorum has been achieved at the Meeting.  Under  Maryland
law,  abstentions  do not constitute a vote "for" or "against" a matter and will
be  disregarded  in  determining  the  "votes  cast" on an issue.  If a proxy is
properly executed and returned accompanied by instructions to withhold authority
to vote,  it represents a broker  "non-vote"  (that is, a proxy from a broker or
nominee  indicating  that such  person has not  received  instructions  from the
beneficial owner or other person entitled to vote shares on a particular  matter
with respect to which the broker or nominee does not have discretionary  power).
The shares  represented by broker non-votes or proxies marked with an abstention
will be considered to be present at the Meeting for purposes of determining  the
existence  of  a  quorum  for  the  transaction  of  business.  Because  of  the
affirmative votes required for Proposal 1, abstentions and broker non-votes will
have the same effect as votes "against" such Proposal.  Because of the nature of
the  business  to be  acted on at the  Meeting,  the  Fund  does not  anticipate
receiving any broker "non-votes".

<PAGE>

                        PROPOSAL 1: ELECTION OF DIRECTORS

      The Fund's  By-Laws  provide  that the Board of  Directors be divided into
three  classes of Directors  serving  staggered  three-year  terms.  The term of
office for Directors in Class II expires at the 1999 Annual  Meeting,  Class III
at the next  succeeding  Annual Meeting and Class I at the following  succeeding
Annual Meeting.  Four Class II nominees are proposed in this Proxy Statement for
election.

      Should any vacancy  occur on the Board of Directors for reasons other than
an increase in the number of  Directors,  the remaining  Directors,  though less
than a quorum,  would be able to fill such  vacancy by the vote of a majority of
their number, as at present.  Should any vacancy occur on the Board of Directors
as a result of an increase in the number of Directors,  a majority of the entire
Board of Directors would be able to fill such vacancy.  Any Director  elected by
the Board to fill a vacancy  would hold office until the next annual  meeting of
shareholders.  If the size of the Board is increased,  the additional  Directors
will be apportioned  among the three classes to make all classes as nearly equal
as possible.

      Unless authority is withheld,  it is the intention of the persons named in
the form of proxy to vote each proxy for the  election  of the  nominees  listed
below.  Each nominee has indicated he will serve if elected,  but if any nominee
should be unable to serve, proxies will be voted for any other person determined
by the persons  named in the form of proxy in  accordance  with their  judgment.
Each  of the  nominees  is  currently  a  member  of  the  Board  of  Directors.

Information Regarding Directors and Officers

      The  following  table  shows  certain  information  about  the  Directors,
including beneficial ownership of Common Stock of the Fund. Each has served as a
Director of the Fund since the Fund's  inception in 1990,  except for Prof.  Dr.
Kohler, Mr. Storr and Mr. Dobson, who were elected to the Board on May 10, 1991,
February 3, 1997, and April 30, 1998, respectively.

      The  following  Directors  have been  nominated  for  election at the 1999
Annual Meeting:

<TABLE>
<CAPTION>
                                                                                                   Shares of Common Stock
                                                                                                   Beneficially Owned,
                                                            Principal Occupations                  Directly or Indirectly,
  Name                 Age  Position with Fund              During Past Five Years                 at April 30, 1999(1)
 -----                 ---  -----------------               ----------------------                 -----------------
<S>                    <C>                        <C>                                                   <C>                      
John A. Bult(2)(3)     62      Director           Chairman of PaineWebber International,                3,246
   Class II                                          Director of The France Growth
                                                     Fund, Inc. and The Greater China Fund, Inc.

Hans G. Storr          67      Director           President, Storr Investments. Chief                   3,135
   Class II                                          Financial Officer of Philip Morris
                                                     Companies, Inc. (1979-1996), Member of the
                                                     Board of Directors of Philip Morris Companies,
                                                     Inc. (1982-1996), Chairman and Chief Executive
                                                     Officer of Philip Morris Capital Corporation
                                                     (1982-1996).

Dr. Juergen F.         59      Director           Chairman of the Board of Executive                       --
Strube                                               Directors of BASF AG. Chairman
   Class II                                          and President of BASF
                                                     Corporation (1985-1988).


                                       2
<PAGE>
                                                                                                   Shares of Common Stock  
                                                                                                   Beneficially Owned,         
                                                            Principal Occupations                  Directly or Indirectly,
  Name                 Age  Position with Fund              During Past Five Years                 at April 30, 1999(1)   
 -----                 ---  -----------------               ----------------------                 -----------------      
<S>                    <C>                        <C>                                                   <C>               

Robert H.              59      Director           President of The Wadsworth Group, First               1,482
Wadsworth(2)(5)                                      Fund Distributors, Inc. and Guinness
   Class II                                          Flight Investment Funds, Inc. Vice
                                                     President of Professionally Managed
                                                     Portfolios and Advisors Series Trust.
     The following are Directors whose terms continue:

Detlef Bierbaum(3)     56   Director              Partner of Sal. Oppenheim Jr. & Cie                      --
    Class I                                           KGaA. Member of the Supervisory              
                                                      Boards of Nanz Stiftung, ESCADA              
                                                      Aktiengesellschaft, Scor Deutschland         
                                                      Ruckversicherungs-Actiengesellschaft, Tertia
                                                      Handels-beteiligungsgesellschaft mbH and Douglas 
                                                      AG.  

                                                                                                   
 Michael W.R.           46      Chairman and      Member of the Board of Managing                          --      
 Dobson(2)(3)                   Director              Directors of Deutsche Bank AG,                            
    Class I                                           Chairman of Deutsche Fonds
                                                      Holding GmbH, DWS Deutsche            
                                                      Gesellschaft fur Wertpapiersparen  
                                                      mbH, Deutsche Asset Management     
                                                      International GmbH, Director of
                                                      Anglo & Overseas Trust Plc, 
                                                      General Enterprise Management
                                                      Services Ltd.
                                                      
                                                      
                                                      
  
Edward C. Schmults(5)  68      Director           Member of the Board of Directors of                     697
   Class I                                           Green Point Financial Corp.
                                                     Chairman of the Board of Trustees of The Edna
                                                     McConnell Clark Foundation. Senior Vice
                                                     President-External Affairs and General Counsel
                                                     of GTE Corporation (1984-1994). Deputy Attorney
                                                     General of the U.S., Department of Justice
                                                     (1981-1984). Partner, White & Case (1965-1973
                                                     and 1977-1981).


                                       3
<PAGE>
                                                                                                   Shares of Common Stock  
                                                                                                   Beneficially Owned,          
                                                            Principal Occupations                  Directly or Indirectly,
  Name                 Age  Position with Fund              During Past Five Years                 at April 30, 1999(1)   
 -----                 ---  -----------------               ----------------------                 -----------------      
<S>                    <C>                        <C>                                                   <C>                  
 Prof. Dr. Claus       71       Director          Member of the Administrative Board                       --                      
 Kohler                                             of Bundesanstalt fur Vereinigungsbedingte                                     
    Class III                                       Sonderaufgaben (1995-1996). Member of the                                    
                                                    Administrative Board of  Treuhandanstalt                                  
                                                    (1990-1994). Member of the Board of Governors   
                                                    and of the Central Bank Council of Deutsche                        
                                                    Bundesbank (until 1990). Member of the Advisory 
                                                    Board of Westfalische Hypothekenbank AG. Member 
                                                    of the Advisory Panel to the Board of Governors 
                                                    of the Central Bank of Oman. Member of the      
                                                    Board (Kuratorium) of the Institute of          
                                                    Empirical Economic Research. Professor of       
                                                    Economics, University of Hannover. Professor of 
                                                    Econo-mics, University of Frankfurt a.M.        
                                                     

Christian H.           55      Director           Managing Director of DWS-Deutsche                        --
Strenger(2)(3)(4)(5)                                 Gesellschaft fur Wertpapiersparen
   Class III                                         mbH (since 1991). Chairman of Deutsche
                                                     Fund Management, Inc. (since 1997). Managing
                                                     Director of Deutsche Bank Securities
                                                     Corporation (1986-1991).

Werner Walbrol(5)      61      Director           President and Chief Executive Officer                   200
   Class III                                         of the German American Chamber
                                                     of Commerce, Inc. and the European American
                                                     Chamber of Commerce, Inc. Member of the United
                                                     States German Youth Exchange Council. Director
                                                     of TUV Rheinland of North America, Inc. and DB
                                                     New World Fund, Limited and LDC. President and
                                                     Director of German American Partnership
                                                     Program, Director of AXA Nordstern Art
                                                     Insurance Corporation, Director of Deutsche
                                                     Funds Inc./Deutsche Portfolios Trust.


                                       4
<PAGE>
                                                                                                     Shares of Common Stock  
                                                                                                     Beneficially Owned,          
                                                            Principal Occupations                    Directly or Indirectly,
  Name                 Age  Position with Fund              During Past Five Years                   at April 30, 1999(1)   
 -----                 ---  -----------------               ----------------------                   -----------------      
<S>                    <C>                     <C>                                                      <C>                  
 Otto Wolff von           80    Director          Chairman of the Board of Otto Wolff                      --                     
 Amerongen                                           Industrieberatung & Beteiligungen                                            
    Class III                                        GmbH (industrial consulting).                                                
                                                     Chairman of the German East-West Trade                                       
                                                     Committee. Honorary Chairman of the Association
                                                     of German Chambers of Industry and Commerce.
                                                     Chairman of the Board of Management of the Otto  
                                                     Wolff Foundation. Member of the Atlantic         
                                                     Advisory Council of United Technologies Corp.    
                                                     (until 1992). Chairman of the Supervisory Board
                                                     of DWA, Deutsche Waggonbau AG, Chairman of the
                                                     Supervisory Board of Allbecon AG, Dusseldorf.
                                                     Member of the Advisory Council of Allianz
                                                     Versicherungs-AG (through 1994). Member of the
                                                     Advisory Council of Creditanstalt-Bankverein
                                                     until 1998. President of the German Society for
                                                     East European Studies until March 1999. Member
                                                     of the Board of Directors of the German Society
                                                     for Foreign Affairs. President of the German
                                                     Business Association in the Russian Federation,
                                                     Moscow.
</TABLE>

- -----------------

(1)   As of April 30,  1999,  all  Directors  and officers as a group owned less
      than 1% of the  outstanding  Common Stock of the Fund. 
(2)   Indicates  that Messrs.  Bult,  Dobson,  Strenger and Wadsworth  each also
      serves as a Director of The New Germany Fund,  Inc.,  one of the two other
      closed-end   registered  investment  companies  for  which  Deutsche  Bank
      Securities Inc. acts as manager.
(3)   Indicates  "interested" Director, as defined in the 1940 Act. Mr. Bierbaum
      is an "interested" Director because of his affiliation with Sal. Oppenheim
      Jr. & Cie KGaA, which is the parent company of a registered broker-dealer;
      Mr. Dobson is an "interested"  Director  because of his  affiliation  with
      Deutsche Bank AG ("Deutsche Bank"), of which Deutsche Bank Securities Inc.
      is an  indirect,  wholly-owned  subsidiary;  Mr.  Bult is an  "interested"
      Director  because of his  affiliation  with  PaineWebber  Incorporated,  a
      registered  broker-dealer;  and Mr. Strenger is an  "interested"  Director
      because   of  his   affiliation   with   DWS-Deutsche   Gesellschaft   fur
      Wertpapiersparen  mbH ("DWS"),  a  majority-owned  subsidiary  of Deutsche
      Bank.
(4)   Indicates  that Mr.  Strenger  owns  shares  of  Deutsche  Bank,  of which
      Deutsche Asset  Management  International  GmbH ("DBAM") and Deutsche Bank
      Securities Inc. are  wholly-owned  subsidiaries.  As of April 30 1999, Mr.
      Strenger owned less than 1% of the outstanding shares of Deutsche Bank.


                                       5
<PAGE>

(5)   Indicates that Messrs. Schmults, Strenger, Wadsworth and Walbrol each also
      serves  as a  Trustee  of  Deutsche  Portfolios,  an  open-end  registered
      investment  company  for  which  Deutsche  Bank  Securities  Inc.  acts as
      sub-adviser of two portfolios and an affiliate of Deutsche Bank Securities
      Inc.  acts  as  investment  manager.  In  addition,  Messrs.  Walbrol  and
      Wadsworth serve as Directors of the DB New World Portfolio Limited as well
      as DB New World Fund Limited and LDC.  Deutsche  Bank AG (New York Branch)
      acts as  Investment  Manager  with  respect  to these  three  funds and as
      Administrator of DB New World Portfolio Limited.

      Each Director also serves as a Director of The Germany Fund,  Inc., one of
the two other closed-end registered investment companies for which Deutsche Bank
Securities Inc. acts as manager.

      The  Board of  Directors  presently  has an Audit  Committee  composed  of
Messrs.   Schmults,   Wadsworth   and  Walbrol.   The  Audit   Committee   makes
recommendations  to the full Board with respect to the engagement of independent
accountants and reviews with the independent accountants the plan and results of
the audit  engagement  and  matters  having a  material  effect  upon the Fund's
financial operations.  The Audit Committee met five times during the fiscal year
ended  October  31,  1998.  In  addition,  the Board has an  Advisory  Committee
composed of Messrs.  Schmults,  Wadsworth  and Walbrol.  The Advisory  Committee
makes recommendations to the full Board with respect to the Management Agreement
between the Fund and Deutsche Bank Securities  Inc. and the Investment  Advisory
Agreement between the Fund and DBAM. The Advisory  Committee met once during the
past  fiscal  year.  The Board has a  Nominating  Committee  composed of Messrs.
Dobson, Wadsworth and Walbrol. The Nominating Committee makes recommendations to
the full Board with respect to the selection of candidates to fill  vacancies on
the Board of  Directors  intended  to be filled by persons not  affiliated  with
Deutsche Bank  Securities  Inc. or DBAM. The Nominating  Committee will consider
suggestions from stockholders submitted in writing to the Secretary of the Fund.

      During the past  fiscal  year,  the Board of  Directors  had four  regular
meetings  and one  special  meeting,  and  each  incumbent  Director,  with  the
exception of Mr.Wolff, attended at least 75% of the aggregate number of meetings
of the Board and meetings of Board Committees on which that Director served.

      The Fund pays each of its Directors who is not an interested person of the
Fund,  the  Investment  Adviser or the Manager an annual fee of $7,500 plus $750
for each  meeting  attended.  Each such  Director  who is also a Director of The
Germany Fund,  Inc. or The New Germany Fund,  Inc. also receives the same annual
and  per-meeting  fees for services as a Director of each such fund. Each of the
Fund, The Germany Fund,  Inc. and The New Germany Fund, Inc. (which three funds,
together with Deutsche Portfolios, an open-end investment company, represent the
entire Fund Complex advised by the Manager and the Investment Adviser within the
meaning of the applicable  rules and  regulations of the Securities and Exchange
Commission)  reimburses the Directors (except for those employed by the Deutsche
Bank Group) for travel expenses in connection with Board meetings. The following
table sets forth the  aggregate  compensation  from the Fund for the fiscal year
ended  October  31,  1998,  and from the Fund and such other three funds for the
year ended December 31, 1998, for each Director who is not an interested  person
of the Fund, and for all such Directors as a group:


                                       6
<PAGE>
                                             Aggregate           Total
                                            Compensation    Compensation From
   Name of Director                           From Fund       Fund Complex
   ---------------                         -------------    -----------------
      Otto Wolff von Amerongen                $ 9,000              $ 18,000
      Prof. Dr. Claus Kohler                   11,250                22,500
      Edward C. Schmults                       16,500                51,250
      Hans G. Storr                            15,750                30,750
      Dr. Juergen F. Strube                     9,750                19,500
      Robert H. Wadsworth                      18,000                72,750
      Werner Walbrol                           17,250                54,750
                                              -------       ---------------
                            Total             $97,500              $269,500
                                              =======       ===============

      No  compensation  is paid by the Fund to  Directors  or  officers  who are
interested persons of the Fund,  Deutsche Bank Securities Inc. or Deutsche Asset
Management International GmbH.

      The  officers of the Fund other than as shown  above are as follows  (each
also serving as an officer of The Germany  Fund,  Inc. and The New Germany Fund,
Inc.):

<TABLE>
<CAPTION>
          Name               Age    Position with Fund          Principal Occupations During Past Five Years
          -----              ---     ----------------             ----------------------------------------
<S>                         <C>     <C>                          <C>   

Kenneth J. Tarr              54    President and Chief           Executive Vice President, Deutsche Bank
                                    Executive Officer               AG, New York Branch. Chairman,
                                                                    Deutsche Bank Trust Co. and Deutsche Morgan Grenfell
                                                                    Investment Management, Inc. (since 1997). Principal,
                                                                    Weiss, Peck & Greer, LLC. (1994-1997).

Robert R. Gambee             56    Chief Operating Officer       Director (since 1992), First Vice President
                                   and Secretary                    (1987-1991) and Vice President (1978-
                                                                    1986) of Deutsche Bank Securities, Inc. 
                                                                    Secretary of Deutsche Funds, Inc. (since 1997) 
                                                                    and Assistant Secretary of DB New World Portfolio Ltd.
                                                                    (since 1998).

Joseph Cheung                40    Chief Financial Officer       Vice President (since 1996), Assistant Vice
                                   and Treasurer                    President (1994-1996) and Associate
                                                                    (1991-1994) of Deutsche Bank Securities Inc.

Laura Weber                  27   Assistant Secretary and         Assistant Vice President (since March 1999)
                                  Assistant Treasurer                and Associate of Deutsche Bank Securities Inc
                                                                     (1997-February 1999). Manager of Raymond James Financial
                                                                     (1996-1997). Portfolio Accountant of Oppenheimer Capital
                                                                     (1995-1996). Supervisor (1994-1995) and
                                                                     Mutual Fund Accountant (1993-1994) of Alliance
                                                                     Capital Management.
</TABLE>


                                       7
<PAGE>

      The officers of the Fund are elected annually by the Board of Directors at
their meeting following the Annual Meeting of Stockholders.

            The Board unanimously recommends a vote FOR Proposal 1.

      Required Vote. The  affirmative  vote of the holders of a plurality of the
shares represented at the Meeting is required for the election of each Director.

                PROPOSAL 2: SELECTION OF INDEPENDENT ACCOUNTANTS

      A majority of members of the Board of  Directors,  including a majority of
the members of the Board of Directors  who are not  "interested"  Directors  (as
defined in the 1940 Act) of the Fund, have selected  PricewaterhouseCoopers  LLP
as independent  accountants  for the Fund for the fiscal year ending October 31,
1999.  The  ratification  of the selection of  independent  accountants is to be
voted upon at the  Meeting  and it is  intended  that the  persons  named in the
accompanying Proxy will vote for PricewaterhouseCoopers LLP. A representative of
PricewaterhouseCoopers  LLP will be  present  at the  Meeting  and will have the
opportunity  to make a  statement  and is  expected  to be  available  to answer
appropriate questions concerning the Fund's financial statements.

             The Board unanimously recommends a vote FOR Proposal 2.

      Required  Vote.  The  affirmative  vote of the  holders of majority of the
shares  represented  at the  Meeting is  required  for the  ratification  of the
selection by the Board of Directors of PricewaterhouseCoopers LLP as independent
accountants for the fiscal year ending October 31, 1999.

                    ADDRESS OF INVESTMENT ADVISER AND MANAGER

      The principal office of Deutsche Asset Management  International GmbH, the
Fund's Investment Adviser, is located at Mainzer Landstrasse 16, 60325 Frankfurt
am Main,  Federal  Republic of Germany.  The  corporate  office of Deutsche Bank
Securities  Inc.,  the Fund's  Manager,  is located at 31 West 52nd Street,  New
York, New York 10019.

                 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

      As of April 30, 1999, no person, to the knowledge of management,  owned of
record or beneficially more than 5% of the outstanding Common Stock of the Fund,
other than as set forth below:

      Name and Address               Amount and Nature
     of Beneficial Owner          of Beneficial Ownership      Percent of Class
      -----------------            ---------------------        --------------
Lazard Freres &Co. LLC(1) .................594,928                  5.72
30 Rockefeller Plaza
New York, New York 10020

(1)   This  information is based  exclusively  on  information  provided by this
      company.  To the  knowledge of  management,  as of April 30, 1999 no other
      Schedules  13D or 13G had been  filed by any person who owned of record or
      beneficially more than 5% of the outstanding Common Stock of the Fund.

                                  OTHER MATTERS

     No business  other than as set forth  herein is expected to come before the
Meeting,  but should any other matter  requiring a vote of  stockholders  arise,
including any question as to an adjournment of the Meeting, the persons named in
the  enclosed  Proxy will vote thereon  according to their best  judgment in the
interests of the Fund.


                                       8
<PAGE>

                              STOCKHOLDER PROPOSALS

      The deadline for  submitting  stockholder  proposals  for inclusion in the
Fund's  proxy  statement  and form of proxy for the  Fund's  Annual  Meeting  of
Stockholders  in 2000 is January  3,  2000.  Any  stockholder  proposal  that is
intended to be presented at such Annual  Meeting but not submitted for inclusion
in the Fund's proxy statement and form of proxy in accordance with the foregoing
sentence  must be received by the Fund's  Secretary at the address  indicated on
the first page of this Proxy  Statement  not later than April 8, 2000.  Any such
proposal  received  after  such date will be  considered  untimely,  and will be
excluded  from the next Annual  Meeting in  accordance  with the Fund's  Advance
Notice By-law.

                         EXPENSES OF PROXY SOLICITATION

    The cost of preparing, assembling and mailing material in connection with
this  solicitation  will be borne by the Fund.  In addition to the use of mails,
proxies may be  solicited  personally  by regular  employees  of the Fund or the
Manager  or by  telephone  or  telegraph.  Brokerage  houses,  banks  and  other
fiduciaries  may be requested to forward proxy  solicitation  materials to their
principals to obtain  authorization for the execution of proxies,  and they will
be  reimbursed  by  the  Fund  for  out-of-pocket   expenses  incurred  in  this
connection.  The Fund has also made  arrangements  with  Morrow & Co.,  Inc.  to
assist  in the  solicitation  of  proxies,  if called  upon by the  Fund,  at an
estimated fee of $7,500 plus reimbursement of normal expenses.

                             ANNUAL REPORT DELIVERY

      The Fund will furnish, without charge, a copy of its annual report for the
fiscal  year ended  October  31,  1998 to any  stockholder  upon  request.  Such
requests should be directed by mail to: The Central  European Equity Fund, Inc.,
31 West 52nd Street, New York, New York 10019 or by telephone to 1-800-437-6269.

                                                    Robert R. Gambee
                                                    Chief Operating Officer
                                                    and Secretary

Dated: May 3, 1999

STOCKHOLDERS WHO DO NOT EXPECT TO BE PRESENT AT THE MEETING AND WHO WISH TO HAVE
THEIR SHARES VOTED ARE REQUESTED TO DATE AND SIGN THE ENCLOSED  PROXY AND RETURN
IT TO THE FUND.

                                       9
<PAGE>


                      [CENTRAL EUROPEAN FUND LOGO OMITTED]

<PAGE>

PROXY                 THE CENTRAL EUROPEAN EQUITY FUND, INC.
                               31 West 52nd Street
                            New York, New York 10019

           THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

      The  undersigned  hereby  appoints  Robert R. Gambee and Joseph  Cheung as
Proxies, each with the power of substitution, and hereby authorizes each of them
to represent and to vote, as designated below, all the shares of common stock of
The Central  European  Equity  Fund,  Inc.  (the  "Fund")  held of record by the
undersigned on April 30 1999 at an Annual Meeting of  Stockholders to be held on
June 7, 1999 or any adjournment thereof.

1.ELECTION OF DIRECTORS. 

[ ]FOR all nominees listed below           [ ]WITHHOLDING AUTHORITY
(except as marked to the contrary below)   to vote for all nominees listed below
                                                   

      (Instruction:  To withhold  authority for any individual  nominee strike a
                 line through the nominee's name in the list below.)

                                    CLASS II
                               (to serve until the

                      2002 Annual Meeting of Stockholders)
                     John A. Bult         Dr. Juergen F. Strube
                     Hans G. Storr        Robert H. Wadsworth

2.TO  RATIFY THE  SELECTION BY THE BOARD OF DIRECTORS OF  PricewaterhouseCoopers
      LLP AS  INDEPENDENT  ACCOUNTANTS  FOR THE FISCAL YEAR  ENDING  OCTOBER 31,
      1999.

         [ ]FOR                     [ ]AGAINST                   [ ]ABSTAIN


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3.TO  TRANSACT  SUCH OTHER  BUSINESS AS MAY PROPERLY  COME BEFORE THE MEETING OR
      ANY ADJOURNMENT  THEREOF.  

      This proxy when  properly  executed  will be voted in the manner  directed
herein by the undersigned stockholder.  If no direction is made, this proxy will
be voted FOR Proposal 1 and to APPROVE Proposal 2.

      When signing as attorney,  executor,  administrator,  trustee or guardian,
please give full title as such. If a  corporation,  please provide the full name
of the  corporation  and the signature of the authorized  officer signing on its
behalf.
                                        -----------------------------------
                                                Name (please print)
                                        -----------------------------------
                                        Name of Corporation (if applicable)

                                       (By)______________(Date)______  1999
                                             (Signature)

   PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY USING THE ENCLOSED ENVELOPE.


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