<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>file001.txt
<DESCRIPTION>DEFINITIVE 14A
<TEXT>


                                  SCHEDULE 14A
                                 (Rule 14a-101)
                     INFORMATION REQUIRED IN PROXY STATEMENT
                            SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

|X|   Filed by the Registrant
|_|   Filed by a Party other than the Registrant

Check the Appropriate Box:

|_|   Preliminary Proxy Statement
|_|   Confidential, for Use of the Commission Only (as permitted by Rule
      14a-6(e)(2))
|X|   Definitive Proxy Statement
|_|   Definitive Additional Materials
|_|   Soliciting Material Under Rule 14a-12

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

                     THE CENTRAL EUROPEAN EQUITY FUND, INC.
                (Name of Registrant as Specified In Its Charter)

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

     (Name of Person(s) Filing Proxy Statement if other than the Registrant)
                                 NOT APPLICABLE

Payment of Filing Fee (Check the Appropriate Box):

|X|   No fee required.

|_|   Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

      1.    Title of each class of securities to which transaction applies:

                                 Not Applicable

      2.    Aggregate number of securities to which transaction applies:

                                 Not Applicable

      3.    Per unit price or other underlying value of transaction computed
            pursuant to Exchange Act Rule 0-11 (set forth the amount on which
            the filing fee is calculated and state how it was determined):

                                 Not Applicable

      4.    Proposed maximum aggregate value of transaction:

                                 Not Applicable

      5.    Total fee paid:

                                 Not Applicable

|_|   Fee paid previously with preliminary materials:

                                 Not Applicable

|_|   Check box if any part of the fee is offset as provided by Exchange Act
      Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
      paid previously. Identify the previous filing by registration statement
      number, or the form or schedule and the date of its filing.

      1.    Amount previously paid:
      2.    Form, Schedule or Registration Statement No.:
      3.    Filing Party:
      4.    Date Filed:

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

                                   ----------

                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
                                 June 28, 2001

                                   ----------

To our Stockholders:

      Notice is hereby  given that the Annual  Meeting  of  Stockholders  of The
Central European Equity Fund, Inc., a Maryland corporation (the "Fund"), will be
held at 3:00 P.M.,  New York time,  on June 28,  2001 at the offices of Deutsche
Bank,  31 West 52nd  Street,  5th Floor,  New York,  New York for the  following
purposes:

      1.    To elect  three  Directors,  each to hold office for a term of three
            years and until his successor is duly elected and qualified.

      2.    To  transact  such other  business as may  properly  come before the
            meeting.

      Only  holders of record of Common Stock at the close of business on May 8,
2001 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.

                                          By Order of the Board of Directors

                                          Robert R. Gambee
                                          Chief Operating Officer
                                          and Secretary

Dated: May 15, 2001

      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 28, 2001

                                 ---------------
                                 PROXY STATEMENT
                                 ---------------

      This proxy statement is furnished by the Board of Directors of The Central
European Equity Fund, Inc., a Maryland  corporation (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 28, 2001 at the
offices of Deutsche  Bank, 31 West 52nd Street,  5th Floor,  New York, New York.
The purpose of the Meeting and the matters to be considered 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.  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 May 8, 2001 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 8,090,420 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 15, 2001.

      The Board of  Directors  of the Fund has  nominated  three  Directors  for
election at the Meeting (Proposal 1).

      A quorum is necessary to hold a valid meeting. If stockholders entitled to
cast  one-third  of all votes  entitled to be cast at the Meeting are present in
person or by proxy,  a quorum  will be  established.  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.


<PAGE>

                        PROPOSAL 1: ELECTION OF DIRECTORS

      The Fund's charter (the "Charter") provides 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 I expires at the 2001  Annual  Meeting,
Class II at the next  succeeding  Annual  Meeting and Class III at the following
succeeding  Annual  Meeting.  Three Class I nominees  are proposed in this Proxy
Statement for election.

      Should  any  vacancy  occur  on the  Board  of  Directors,  the  remaining
Directors  would  be able to fill  such  vacancy  by the  affirmative  vote of a
majority of the remaining  directors in office,  even if the remaining directors
do not constitute a quorum.  Any Director elected by the Board to fill a vacancy
would hold office until the remainder of the full term of the class of directors
in which the vacancy occurred and until a successor is elected and qualified. If
the size of the Board is increased,  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  accompanying  form of proxy to vote  each  proxy  for the  election  of the
nominees  listed  below.  Each  nominee  has  indicated  that he will serve as a
Director 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 discretion.

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 1986,  except for Ambassador
Burt, and Mr. Storr, who were elected to the Board on June 20, 1997 and June 30,
2000, respectively.

      The  following  Directors  have been  nominated  for  election at the 2001
Annual Meeting:

<TABLE>
<CAPTION>
                                                                                                      Shares of Common Stock
                                                                                                       Beneficially Owned,
                                                                                                     Directly or Indirectly,
     Name                 Age  Position with Fund  Principal Occupations During Past Five Years         at May 1, 2001(1)
     ----                 ---  ------------------  --------------------------------------------     ------------------------
<S>                       <C>  <C>                 <C>                                                   <C>
Detlef Bierbaum(3)        58   Director            Partner of Sal. Oppenheim Jr. & Cie KGaA               --
  Class I                                           (investment management and brokerage). Member
                                                    of the Supervisory Boards of ESCADA
                                                    Aktiengesellschaft, Tertia
                                                    Handelsbeteiligungsgesellschaft mbH, Douglas AG,
                                                    Artemedia AG, LVM Landwirtschaftlicher
                                                    Versicherungsverein, Monega KAG, AXA Investment
                                                    Managers.
</TABLE>


                                        2
<PAGE>

<TABLE>
<CAPTION>
                                                                                                      Shares of Common Stock
                                                                                                       Beneficially Owned,
                                                                                                     Directly or Indirectly,
     Name                 Age  Position with Fund  Principal Occupations During Past Five Years         at May 1, 2001(1)
     ----                 ---  ------------------  --------------------------------------------     ------------------------
<S>                       <C>  <C>                 <C>                                                   <C>
Ambassador                54   Director            Chairman, IEP Advisors, Inc. and Weirton               245
Richard R. Burt(5)                                  Steel, Member of the Boards of
  Class I                                           Hollinger International and Archer Daniels
                                                    Midland; Director, Flag Investors Fund Family;
                                                    Director, The Mitchel Hutchins family of funds;
                                                    Member, Textron Corporation International Advisory
                                                    Council. Partner, McKinsey & Company (1991-1994),
                                                    Chief Negotiator U.S. in the Strategic Arms
                                                    Reduction Talks (START) with the former Soviet
                                                    Union (1989-1991), U.S. Ambassador to the Federal
                                                    Republic of Germany (1985-1989).


Edward C. Schmults(5)     70   Director            Member of the Board of Directors of Green              973
  Class I                                           Point Financial Corp. and Viatel, Inc., 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).




The following are Directors whose terms continue:

John A. Bult(2)(3)        64   Director            Chairman of PaineWebber International,               3,286
  Class II                                          Director of The France Growth Fund, Inc.
                                                    and The Greater China Fund, Inc.

Hans G. Storr             69   Director            President, Storr Investments. Chief Financial        3,495
  Class II                                          Officer of Philip Morris Companies, Inc.
                                                    (1979-1996), Member of the Board of Directors of
                                                    Philip Morris Companies, Inc. (1982-1996).
</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>
                                                                                                      Shares of Common Stock
                                                                                                       Beneficially Owned,
                                                                                                     Directly or Indirectly,
     Name                 Age  Position with Fund  Principal Occupations During Past Five Years         at May 1, 2001(1)
     ----                 ---  ------------------  --------------------------------------------     ------------------------
<S>                       <C>  <C>                 <C>                                                   <C>
Christian H.              57   Director            Company Director of DWS Investment GmbH              5,000
Strenger(2)(3)(4)                                   (since 1999). Managing Director of
  Class III                                         DWS - Deutsche Gesellschaft fur Wertpapiersparen
                                                    mbH (1991-1999). Chairman of Deutsche Fund
                                                    Management, Inc. (1997-2000). Managing Director of
                                                    Deutsche Bank Securities Corporation (1986-1991).

Dr. Juergen F. Strube     61   Director            Chairman of the Board of Executive Directors           --
  Class  II                                         of BASF AG; Member of the Supervising Boards of
                                                    Allianz Lebensversicherungs - AG, Bertelsmann AG,
                                                    Commerzbank AG, Hapag-Lloyd AG, Hochtlef AG and
                                                    Linde AG. Chairman and President of BASF
                                                    Corporation (1985-1988).

Robert H.                 61   Director            President of The Wadsworth Group,                    1,970
Wadsworth(2)(5)                                     First Fund Distributors, Inc. and Trust
  Class II                                          for Investment Managers, Vice President of
                                                    Professionally Managed Portfolios and Advisors
                                                    Series Trust.

Werner Walbrol(5)         63   Director            President and Chief Executive Officer of               557
  Class III                                         the German American Chamber of Commerce, Inc. and
                                                    the European American Chamber of Commerce, Inc.
                                                    Director of TUV Rheinland of North America, Inc.
                                                    President and Director of German American
                                                    Partnership Program, Director of AXA Nordstern Art
                                                    Insurance Corporation, Trustee of V.I.T. Funds
                                                    Trust and Member of the Advisory Board of Abels &
                                                    Grey.
</TABLE>


                                       4
<PAGE>

<TABLE>
<CAPTION>
                                                                                                      Shares of Common Stock
                                                                                                       Beneficially Owned,
                                                                                                     Directly or Indirectly,
     Name                 Age  Position with Fund  Principal Occupations During Past Five Years         at May 1, 2001(1)
     ----                 ---  ------------------  --------------------------------------------     ------------------------
<S>                       <C>  <C>                 <C>                                                   <C>
Otto Wolff von            82   Director            Chairman of the Board of Otto Wolff                    --
Amerongen                                           Industrieberatung & Beteiligungen
  Class III                                         GmbH (industrial consulting). Chairman of the
                                                    German East-West Trade Committee (until 2000).
                                                    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
                                                    (until 1999), Chairman of the Supervisory Board of
                                                    Allbecon AG, Dusseldorf. Member of the Advisory
                                                    Council of Allianz Versicherungs-AG (until
                                                    February 1994). Member of the Advisory Council of
                                                    Creditanstalt-Bankverein (until 1998). President
                                                    of the German Society for East European Studies
                                                    (until 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 May 1, 2001,  all  Directors and officers as a group owned less than
      1% of the outstanding Common Stock of the Fund.

(2)   Indicates that Messrs.  Bult,  Strenger and Wadsworth each also serve as a
      Director of The New Germany Fund,  Inc.,  one of the two other  closed-end
      registered  investment  companies for which Deutsche Banc Alex. Brown Inc.
      acts as manager.

(3)   Indicates  "interested" Director, as defined in the Investment Company Act
      of 1940,  as amended (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. Bult is an
      "interested"  Director because of his affiliation with U.B.S.  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 ("DeAM") and Deutsche Banc
      Alex.  Brown Inc. are  wholly-owned  subsidiaries.  As of May 1, 2001, Mr.
      Strenger owned less than 1% of the outstanding shares of Deutsche Bank.

(5)   Indicates  that Messrs.  Burt and Wadsworth also serve as Directors of the
      Deutsche  Investors  Portfolios Trust and Deutsche  Investors Funds, Inc.,
      both open-end  investment  companies advised by Investment Company Capital
      Corp. They also serve as Directors for the Deutsche Banc Alex.  Brown Cash
      Reserve Fund, Inc; Flag Investors Communication Fund, Inc.; Flag Investors
      Series Funds, Inc.; Emerging Growth Fund, Inc.;  Short-Intermediate Income
      Fund,   Inc.;  Flag  Investors  Value  Builder  Fund,  Inc.;  Real  Estate
      Securities Fund, Inc.; and Flag Investors


                                       5
<PAGE>

      Equity Partners Fund, Inc. These funds are open-end  investment  companies
      advised by Investment Company Capital Corp.  Messrs.  Schmults and Walbrol
      also serve as  directors of Deutsche  Asset  Management  VIT Funds,  Inc.,
      advised by Deutsche Asset  Management,  Inc.  Investment  Company  Capital
      Corp. is an indirect wholly-owned subsidiary of Deutsche Bank AG.

      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 Banc
Alex. Brown Inc. acts as manager.

      The  Board of  Directors  presently  has an Audit  Committee  composed  of
Messrs. Burt, Schmults,  Storr, 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 twice during the fiscal year ended
October 31, 2000. In addition,  the Board has an Advisory  Committee composed of
Messrs.  Burt,  Schmults,  Storr,  Wadsworth and Walbrol. The Advisory Committee
makes recommendations to the full Board with respect to the Management Agreement
between the Fund and Deutsche Banc Alex. Brown Inc. and the Investment  Advisory
Agreement between the Fund and DeAM. The Advisory  Committee met once during the
past fiscal  year.  The Board also has an Executive  Committee  and a Nominating
Committee. During the past fiscal year, the Executive Committee did not meet and
the Nominating  Committee met once.  The members of the Executive  Committee are
Messrs.  Strenger,  Burt, Schmults,  Storr, Wadsworth and Walbrol. The Executive
Committee has the authority to act for the Board on all matters between meetings
of the Board.  The members of the  Nominating  Committee  are Messrs.  Strenger,
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
Banc Alex.  Brown Inc. or DeAM, and the  Nominating  Committee must evaluate the
qualifications  of all  nominees  for  directorship  pursuant  to  the  director
qualification  provisions in the Fund's Bylaws.  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 each incumbent  Director,  with the exception of Messrs. Burt and
Strube,  attended at least 75% of the aggregate  number of meetings of the Board
and, meetings of Board Committees on which that Director served.  Each incumbent
Director,  with the exception of Dr. Strube, attended at least 75% of the number
of regular meetings of the Board.

      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  Investors  Portfolios Trust,  Deutsche  Investors Funds,
Inc.,  Deutsche  Banc Alex.  Brown  Cash  Reserve  Fund,  Inc.,  Flag  Investors
Communication  Fund,  Inc., Flag Investors Series Funds,  Inc.,  Emerging Growth
Fund, Inc.,  Short-Intermediate  Income Fund, Inc., Flag Investors Value Builder
Fund,  Inc., Real Estate  Securities  Fund, Inc., Flag Investors Equity Partners
Fund, Inc., and Deutsche Asset Management VIT Funds, Inc.,  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,  2000,  and from the Fund and such other  funds for the year
ended  December 31, 2000,  for each Director who is not an interested  person of
the Fund, and for all such Directors as a group:


                                       6
<PAGE>

                                 Aggregate Compensation    Total Compensation
         Name of Director              From Fund           From Fund Complex
         ----------------        ----------------------    ------------------

     Richard R. Burt                $12,750                     $ 65,500
     Edward C. Schmults              13,500                       42,500
     Hans G. Storr                   12,750                       27,000
     Dr. Juergen F. Strube            9,000                       18,000
     Robert H. Wadsworth             15,000                       85,000
     Werner Walbrol                  13,500                       43,000
     Otto Wolff von Amerongen         9,750                       20,250
                                    -------                     --------
                   Total            $86,250                     $301,250
                                    =======                     ========

      No  compensation  is paid by the Fund to  Directors  or  officers  who are
interested persons of the Fund, Deutsche Banc Alex. Brown 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>
Richard T. Hale           54        President and Chief           Trustee/President of each of the investment
                                    Executive Officer              companies advised by Deutsche Asset
                                                                   Management, Inc. or its affiliates; Managing
                                                                   Director, Deutsche Asset Management; Managing
                                                                   Director, Deutsche Banc Alex. Brown Inc.; Director
                                                                   and President, Investment Company Capital Corp.

Hanspeter Ackermann       44        Chief Investment Officer      President of Deutsche Bank Investment
                                                                   Management Inc., Senior International Equity
                                                                   Portfolio Manager of Bankers Trust Co., President
                                                                   and Managing Partner of Eiger Asset Management
                                                                   (1993-1996), Managing Director and CIO of SBC
                                                                   Portfolio Management International (1983-1993).

Robert R. Gambee          58        Chief Operating Officer       Director (since 1992), First Vice President
                                    and Secretary                  (1987-1991) and Vice President
                                                                   (1978-1986) of Deutsche Banc Alex. Brown, Inc.
                                                                   Secretary of Flag Investors Funds, Inc., Deutsche
                                                                   Bank Investment Management, Inc. (1997-2000).


Joseph Cheung             42        Chief Financial Officer       Vice President (since 1996), Assistant Vice
                                    and Treasurer                  President (1994-1996) and Associate of
                                                                   Deutsche Banc Alex. Brown Inc.
</TABLE>

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


                                       7
<PAGE>

             The Board unanimously recommends a vote FOR Proposal 1.

      Required Vote.  Provided a quorum has been  established,  the  affirmative
vote of a  plurality  of the  votes  cast at the  Meeting  is  required  for the
election of each Director.

                     SELECTION OF INDEPENDENT PUBLIC AUDITOR

      At a  meeting  held on  April  20,  2001  and  based  upon  the  unanimous
recommendation  of the  Audit  Committee,  the Board of  Directors  of the Fund,
including a majority of the Directors who are non-interested Directors, selected
PricewaterhouseCoopers  LLP (the  "Firm"  or  "PwC")  to act as the  independent
public auditor for the Fund for the fiscal year ending  October 31, 2001.  Based
principally  on  representations  from the  Firm,  the Fund  knows of no  direct
financial or material indirect financial interest of such Firm in the Fund. That
Firm, or a predecessor  firm, has served as the  independent  public auditor for
the Fund since inception. A representative of PwC 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  regarding  the  Fund's  financial
statements.

Audit Fees

      The aggregate fees billed by PwC for  professional  services  rendered for
the Audit of the Fund's annual  financial  statements  for the fiscal year ended
October 31, 2000 were $58,000.

Financial Information Systems Design and Implementation Fees

      PwC did not render any information  technology services to the Fund during
the fiscal year ended October 31, 2000.

All Other Fees

      The  aggregate  fees billed by PwC for tax services  rendered to the Fund,
other than the services  described  above under "Audit Fees" for the fiscal year
ended October 31, 2000, were $12,800. In addition,  the aggregate fees billed by
PwC for  services  rendered to the U.S.  asset  management  business  within the
Deutsche Bank group,  including  Deutsche Banc Alex.  Brown Inc., for the fiscal
year ended October 31, 2000 were approximately $485,000.

                             AUDIT COMMITTEE REPORT

      The role of the Audit Committee is to assist the Board in its oversight of
the Fund's financial  reporting  process.  The Board of Directors has determined
that all members of the  Committee are  independent,"  as required by applicable
listing  standards  of the New  York  Stock  Exchange.  The  Committee  operates
pursuant to a Charter  that was last  amended and restated by the Board on April
20, 2001,  a copy of which is attached to this Proxy  Statement as Exhibit A. As
set  forth  in the  Charter,  management  of the  Fund  is  responsible  for the
preparation,  presentation and integrity of the Fund's financial statements, the
Fund's  accounting and financial  reporting  principles,  and internal  controls
designed to assure compliance with accounting  standards and applicable laws and
regulations.  The  independent  auditors are responsible for auditing the Fund's
financial  statements  and  expressing  an opinion as to their  conformity  with
generally accepted accounting principles.

     In the performance of its oversight function,  the Committee has considered
and  discussed  the  audited  financial   statements  with  management  and  the
independent  auditors.  The Committee has also  discussed  with the  independent
auditors the matters required to be discussed by Statement on Auditing Standards
No.  61,   Communication  with  Audit  Committees,   as  currently  modified  or
supplemented.  Finally,  the Committee has received the written  disclosures and
the letter from the  independent  auditors  required by  Independence  Standards
Board  Standard  No. 1,  Independence  Discussions  with  Audit  Committees,  as
currently in effect,  has discussed with


                                       8
<PAGE>

the  independent  auditors  the  auditors'  independence  from  the Fund and its
management,  and has considered  whether the provision of non-audit  services to
the Fund's  investment  manager and adviser and their affiliated  persons by the
independent auditors is compatible with maintaining the auditors' independence.

      The members of the Audit Committee are not  professionally  engaged in the
practice  of  auditing  or  accounting  and are not  employed  by the  Fund  for
accounting,  financial  management or internal control purposes.  Members of the
Committee rely without independent  verification on the information  provided to
them and on the representations made by management and the independent auditors.
Accordingly,  the Audit  Committee's  oversight  does not provide an independent
basis to determine that  management has  maintained  appropriate  accounting and
financial reporting principles and policies, or internal control and procedures,
designed to assure compliance with accounting  standards and applicable laws and
regulations.  Furthermore,  the Audit Committee's considerations and discussions
referred  to  above  do not  assure  that  the  audit  of the  Fund's  financial
statements has been carried out in accordance with generally  accepted  auditing
standards,  that the  financial  statements  are  presented in  accordance  with
generally accepted accounting principles or that the Fund's auditors are in fact
"independent".

      Based upon the reports  and  discussions  described  in this  report,  and
subject to the  limitations  on the role and  responsibilities  of the Committee
referred to above and in the Charter,  the  Committee  recommended  to the Board
that the audited  financial  statements  be included in the Fund's Annual Report
for the fiscal year ended October 31, 2000.

Submitted by the Audit Committee
of the Fund's Board of Directors

Ambassador Richard R. Burt
Edward C. Schmults
Hans G. Storr
Robert H. Wadsworth
Werner Walbrol

                    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,  D-60325
Frankfurt am Main, Federal Republic of Germany. The corporate office of Deutsche
Banc Alex.  Brown 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 May 1, 2001,  no person,  to the knowledge of  management,  owned of
record or beneficially owned more than 5% of the outstanding Common Stock of the
Fund, other than as set forth below.

<TABLE>
<CAPTION>
      Name and Address                     Amount and Nature             Percent of
     of Beneficial Owner                of Beneficial Ownership    Outstanding Common Stock
     -------------------                -----------------------    ------------------------
<S>                                            <C>                          <C>
President and Fellows
of Harvard College(1) ...............          937,801(1)                   11.58
c/o Harvard Management Company, Inc.
600 Atlantic Avenue
Boston, MA 02210
</TABLE>

----------
(1)   This  information is based  exclusively  on  information  provided by such
      person on Schedule  13G filed with respect to the Fund on February 9, 2001
      and February 11,  2000.  Lazard  Freres & Co. LLC has filed a Schedule 13G
      with respect to the Fund on May 5, 1999, but subsequently clarified on May
      9, 2000,  after being  questioned by the Fund's  Secretary,  that they own
      less than 5% of the outstanding Common Stock of the Fund.


                                       9
<PAGE>

                       SECTION 16(a) BENEFICIAL OWNERSHIP
                              REPORTING COMPLIANCE

      During the fiscal year ended  October  31, 2000 and current  year to date,
Messrs.  Burt and  Schmults  each did not file on a timely  basis three  monthly
reports on Form 4 (Statement of Changes of Beneficial  Ownership of  Securities)
covering three and four transactions,  respectively.  In addition, Messrs. Storr
and Walbrol each did not file on a timely  basis four monthly  reports on Form 4
(Statement of Changes of  Beneficial  Ownership of  Securities)  during the past
fiscal  year and  current  year to date  covering  five  and four  transactions,
respectively.  Mr. Wadsworth did not file on a timely basis five monthly reports
on Form 4 (Statement of Changes of Beneficial  Ownership of  Securities)  during
the past fiscal year and current year to date covering six transactions. Each of
the covered  transactions were part of an automatic  investment program in which
the director's committee meeting fee is applied to open market purchases of Fund
shares.

                                  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  properly
come before the  meeting,  including  any question as to an  adjournment  of the
Meeting,  the persons named in the enclosed Proxy will vote thereon according to
their discretion.

                              STOCKHOLDER PROPOSALS

      In order for stockholder  proposals  otherwise  satisfying the eligibility
requirements of Securities  Exchange  Commission Rule 14a-8 to be considered for
inclusion  in the  Fund's  proxy  statement  for the 2002  Annual  Meeting,  the
proposals must be received at The Central  European  Equity Fund,  Inc., 31 West
52nd Street,  New York,  New York,  10019,  Attention:  Secretary,  on or before
January 15, 2002.

      In addition,  the Fund's  Bylaws  currently  provide that if a stockholder
desires  to bring  business  (including  director  nominations)  before the 2002
Annual Meeting that is or is not the subject of a proposal timely  submitted for
inclusion  in the Fund's proxy  statement,  written  notice of such  business as
prescribed  in the  Bylaws  must be  received  by the Fund's  Secretary  between
January 15,  2002 and  February  14,  2002.  For  additional  requirements,  the
stockholder  may refer to the  Bylaws,  a current  copy of which may be obtained
without  charge upon  request  from the Fund's  Secretary.  If the Fund does not
receive timely notice pursuant to the Bylaws,  the proposal may be excluded from
consideration  at the meeting,  regardless,  of any earlier  notice  provided in
accordance with Securities Exchange Commission Rule 14a-8.

                         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 $6,000 plus reimbursement of normal expenses.


                                       10
<PAGE>

                             ANNUAL REPORT DELIVERY

      The Fund will furnish, without charge, a copy of its annual report for the
fiscal  year ended  October  31,  2000 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-GERMANY.
Annual reports are also available on the Fund's web site: www.ceefund.com.

                                            Robert R. Gambee
                                            Chief Operating Officer
                                            and Secretary

Dated: May 15, 2001

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.


                                       11
<PAGE>

                                                                       Exhibit A

                     THE CENTRAL EUROPEAN EQUITY FUND, INC.
                                 (the "Company")

                            AUDIT COMMITTEE CHARTER

I.    Composition of the Audit Committee: The Audit Committee comprises at least
      three  directors,  each of whom shall have no relationship to the Company,
      its investment manager, its investment adviser or its custodian (including
      sub-custodians)  that  may  interfere  with  the  exercise  of  his or her
      independence  from  management  and  the  Company  and,  as to  his or her
      relationship  to the  Company,  shall  otherwise  satisfy  the  applicable
      membership  requirements  under the rules of the New York Stock  Exchange,
      Inc., as such  requirements  are  interpreted by the Board of Directors in
      its business  judgment.  Copies of the relevant  requirements are attached
      hereto.

II.   Purposes of the Audit  Committee:  The purposes of the Audit Committee are
      to assist the Board of Directors:

      1.    in its oversight of the Company's accounting and financial reporting
            principles   and  policies  and  related   controls  and  procedures
            maintained by or on behalf of the Company;

      2.    in its  oversight  of the  Company's  financial  statements  and the
            independent audit thereof;

      3.    in selecting,  evaluating and, where deemed  appropriate,  replacing
            the outside  auditors  (or  nominating  the  outside  auditors to be
            proposed for shareholder approval in the proxy statement); and

      4.    in evaluating the independence of the outside auditors.

      The function of the Audit  Committee is oversight.  The  management of the
      Company,  including the service providers so contractually  obligated, are
      responsible  for  the  preparation,  presentation  and  integrity  of  the
      Company's   financial   statements.   Management  and  applicable  service
      providers are  responsible  for  maintaining  appropriate  accounting  and
      financial  reporting  principles  and  policies  and related  controls and
      procedures  designed to assure  compliance with  accounting  standards and
      applicable laws and regulations.  The outside auditors are responsible for
      planning and carrying out a proper audit of the Company's annual financial
      statements.   In  fulfilling  their  responsibilities   hereunder,  it  is
      recognized that members of the Audit Committee are not full-time employees
      of the  Company  and  are  not,  and do not  represent  themselves  to be,
      accountants  or  auditors  by  profession  or  experts  in the  fields  of
      accounting or auditing,  including in respect of auditor independence.  As
      such, it is not the duty or  responsibility  of the Audit Committee or its
      members to conduct  "field work" or other types of auditing or  accounting
      reviews or procedures or to set auditor independence  standards,  and each
      member  of the  Audit  Committee  shall  be  entitled  to  rely on (i) the
      integrity  of those  persons  and  organizations  within and  outside  the
      Company  from which it  receives  information,  (ii) the  accuracy  of the
      financial and other  information  provided to the Audit  Committee by such
      persons or  organizations  absent actual  knowledge to the contrary (which
      shall  be  promptly  reported  to  the  Board  of  Directors),  and  (iii)
      representations  made  by  management  as to any  information  technology,
      internal audit and other  non-audit  services  provided by the auditors to
      the Company, to the Company's  investment  manager,  investment adviser or
      any entity  controlling,  controlled  by or under common  control with the
      investment  manager  or  investment  adviser   ("Manager/Adviser   Control
      Affiliate"), or to the Company's custodian (including sub-custodians).

      The outside  auditors for the Company are  ultimately  accountable  to the
      Board of  Directors  (as  assisted by the Audit  Committee).  The Board of
      Directors,  with the assistance of the Audit  Committee,  has the ultimate
      authority and  responsibility to select,  evaluate and, where appropriate,
      replace the outside  auditors (or to nominate  the outside  auditors to be
      proposed for shareholder approval in the proxy statement).


                                      A-1
<PAGE>

The  outside  auditors  shall  submit to the Company  annually a formal  written
statement  delineating all  relationships  between the outside  auditors and the
Company  ("Statement as to  Independence"),  addressing  each non-audit  service
provided  to the  Company  and at least the  matters  set forth in  Independence
Standards Board No. 1.

The  outside  auditors  shall  submit to the Company  annually a formal  written
statement of the fees billed for each of the  following  categories  of services
rendered  by the  outside  auditors:  (i)  the  audit  of the  Company's  annual
financial   statements  for  the  most  recent  fiscal  year;  (ii)  information
technology consulting services for the most recent fiscal year, in the aggregate
and by each service (and separately  identifying fees for such services relating
to financial information systems design and implementation); and (iii) all other
services  rendered by the outside  auditors for the most recent  fiscal year, in
the  aggregate  and by each  service.  The statement as to (ii) and (iii) should
include (and separately  disclose) fees billed for the indicated services to (a)
the  Company,  (b) the  Company's  investment  manager,  investment  adviser and
Manager/Adviser  Control  Affiliates that provide  services to the Company,  (c)
Manager/Adviser  Control Affiliates that do not provide services to the Company,
and (d) the custodian (including sub-custodians).

III.  Meetings of the Audit  Committee:  The Audit Committee shall meet as often
      as may be  required  to discuss  the  matters  set forth in Article IV. In
      addition,  the Audit  Committee  should meet  separately at least annually
      with  management and the outside  auditors to discuss any matters that the
      Audit  Committee  or any of these  persons  or  firms  believe  should  be
      discussed  privately.  The Audit  Committee  may  request  any  officer or
      employee of the Company or any service  provider,  outside  counsel to the
      Company or the independent  directors or the Company's outside auditors to
      attend a meeting of the Audit Committee or to meet with any members of, or
      consultants  to, the Audit  Committee.  Members of the Audit Committee may
      participate  in a meeting of the Audit  Committee  by means of  conference
      call or similar  communications  equipment  by means of which all  persons
      participating in the meeting can hear each other.

IV.   Duties and Powers of the Audit Committee:  To carry out its purposes,  the
      Audit Committee shall have the following duties and powers:

      1.    with respect to the outside auditor,

            (i)   to  provide  advice to the Board of  Directors  in  selecting,
                  evaluating or replacing outside auditors;

            (ii)  toreview  the fees  charged by the outside  auditors for audit
                  and non-audit services;

            (iii) to  ensure  that the  outside  auditors  prepare  and  deliver
                  annually a Statement as to Independence  (it being  understood
                  that the outside auditors are responsible for the accuracy and
                  completeness of this  Statement),  to discuss with the outside
                  auditors  any  relationships  or  services  disclosed  in this
                  Statement that may impact the objectivity and  independence of
                  the Company's outside auditors and to recommend that the Board
                  of  Directors  take  appropriate  action in  response  to this
                  Statement   to  satisfy   itself  of  the  outside   auditors'
                  independence;

            (iv)  if  applicable,  to consider  whether  the  outside  auditors'
                  provision of (a) information  technology  consulting  services
                  relating  to   financial   information   systems   design  and
                  implementation   and  (b)  other  non-audit  services  to  the
                  Company, the Company's investment manager,  investment adviser
                  or   Manager/Adviser   Control  Affiliates  or  the  custodian
                  (including  sub-custodians) is compatible with maintaining the
                  independence of the outside auditors; and


                                      A-2
<PAGE>

            (v)   to instruct the outside auditors that the outside auditors are
                  ultimately  accountable  to the Board of  Directors  and Audit
                  Committee;

      2.    with  respect to  financial  reporting  principles  and policies and
            related controls and procedures,

            (i)   to advise  management  and the outside  auditors that they are
                  expected  to  provide  or cause to be  provided  to the  Audit
                  Committee a timely analysis of significant financial reporting
                  issues and practices;

            (ii)  to consider any reports or  communications  (and  management's
                  responses  thereto)  submitted  to the Audit  Committee by the
                  outside  auditors  required  by or  referred  to in SAS 61 (as
                  codified   by  AU  Section   380),   as  may  be  modified  or
                  supplemented, including reports and communications related to:

                  o     deficiencies  noted  in  the  audit  in  the  design  or
                        operation of related controls;

                  o     consideration of fraud in a financial statement audit;

                  o     detection of illegal acts;

                  o     the outside  auditor's  responsibility  under  generally
                        accepted auditing standards;

                  o     significant accounting policies;

                  o     management judgments and accounting estimates;

                  o     adjustments arising from the audit;

                  o     the  responsibility  of the  outside  auditor  for other
                        information in documents  containing  audited  financial
                        statements;

                  o     disagreements with management;

                  o     consultation by management with other accountants;

                  o     major  issues   discussed  with   management   prior  to
                        retention of the outside auditor;

                  o     difficulties  encountered  with management in performing
                        the audit; and

                  o     the outside auditor's judgments about the quality of the
                        entity's accounting principles;

            (iii) to meet with management and/or the outside auditors:

                  o     to discuss the scope of the annual audit;

                  o     to discuss the audited financial statements;

                  o     to discuss  any  significant  matters  arising  from any
                        audit or report  or  communication  referred  to in item
                        2(ii) above, whether raised by management or the outside
                        auditors,    relating   to   the   Company's   financial
                        statements;

                  o     to  review  the form of  opinion  the  outside  auditors
                        propose  to  render  to  the  Board  of  Directors   and
                        shareholders;

                  o     to discuss  allocations of expenses  between the Company
                        and other entities;

                  o     to discuss the Company's compliance with Subchapter M of
                        the Internal Revenue Code of 1986, as amended;

                  o     to discuss  with  management  and the  outside  auditors
                        their    respective    procedures    to    assess    the
                        representativeness  of  securities  prices  provided  by
                        external pricing services;

                  o     to discuss with outside auditors their conclusions as to
                        the  reasonableness of procedures  employed to determine
                        the fair value of securities for which readily available
                        market   quotations


                                      A-3
<PAGE>

                        are  not  available,   management's  adherence  to  such
                        procedures and the adequacy of supporting documentation;

                  o     to discuss significant changes to the Company's auditing
                        and   accounting   principles,    policies,    controls,
                        procedures and practices proposed or contemplated by the
                        outside auditors or management; and

                  o     to inquire about  significant  risks and  exposures,  if
                        any,  and the steps taken to monitor and  minimize  such
                        risks; and

            (iv)  to discuss with the Company's  legal advisors any  significant
                  legal matters that may have a material effect on the financial
                  statements; and

      3.    with respect to reporting, recommendations and other matters,

            (i)   to provide  advice to the Board of Directors in selecting  the
                  principal accounting officer of the Company;

            (ii)  to prepare  any  report or other  disclosures,  including  any
                  recommendation  of the Audit Committee,  required by the rules
                  of the  Securities  and Exchange  Commission to be included in
                  the Company's annual proxy statement;

            (iii) to review this  Charter at least  annually and  recommend  any
                  changes to the full Board of Directors; and

            (iv)  to report its  activities  to the full Board of Directors on a
                  regular basis and to make such recommendations with respect to
                  the above and other  matters as the Audit  Committee  may deem
                  necessary or appropriate.

V.    Resources and Authority of the Audit Committee:  The Audit Committee shall
      have  the   resources   and   authority   appropriate   to  discharge  its
      responsibilities,  including the authority to engage outside  auditors for
      special audits, reviews and other procedures and to retain special counsel
      and other experts or consultants.


                                      A-4
<PAGE>

                                   [Logo Omitted]

<PAGE>

PROXY                THE CENTRAL EUROPEAN EQUITY FUND, INC.

          This proxy is solicited on behalf of the Board of Directors.

      The  undersigned  stockholder of The Central  European Equity Fund, Inc, a
Maryland  corporation (the "Fund"),  hereby appoints Richard T. Hale,  Robert R.
Gambee and Joseph  Cheung,  or either of them,  as proxies for the  undersigned,
with full power of substitution in each of them, to attend the Annual Meeting of
the Stockholders of the Fund to be held at 3:00 P.M., New York time, on June 28,
2001 at the offices of Deutsche Bank, 31 West 52nd Street,  5th Floor, New York,
New York, and any adjournment or postponement  thereof, to cast on behalf of the
undersigned  all votes that the  undersigned is entitled to cast at such meeting
and  otherwise  to  represent  the  undersigned  at the meeting  with all powers
possessed  by  the  undersigned  if  personally  present  at  the  meeting.  The
undersigned hereby  acknowledges  receipt of the Notice of the Annual Meeting of
Stockholders  and of the  accompanying  Proxy  Statement  and  revokes any proxy
heretofore given with respect to such meeting.

      The  votes  entitled  to be  cast  by the  undersigned  will  be  cast  as
instructed  below.  If this Proxy is executed but no instruction  is given,  the
votes  entitled  to be cast by the  undersigned  will be cast  "FOR" each of the
nominees for director and "FOR" each of the other  proposals as described in the
Proxy  Statement  and in the  discretion of the Proxy holder on any other matter
that may properly  come before the meeting or any  adjournment  or  postponement
thereof.

1. [ ] FOR each of the         [ ] WITHHOLD AUTHORITY      [ ] FOR all nominees
       nominees for                as to all listed            except as marked
       director listed             nominees.                    to the contrary
        below.                                                  below.

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

                                 Detlef Bierbaum
                                 Richard R. Burt
                               Edward C. Schmults


<PAGE>

2.    To vote and otherwise  represent the  undersigned on any other matter that
      may properly come before the meeting or any  adjournment  or  postponement
      thereof in the discretion of the Proxy holder.

        [ ] CHECK HERE ONLY IF YOU PLAN TO ATTEND THE MEETING IN PERSON

      Please  sign here  exactly as name  appears on the records of the Fund and
date. If the shares are held jointly,  each holder should sign.  When signing as
an  attorney,   executor,   administrator,   trustee,  guardian,  officer  of  a
corporation or other entity or in another representative  capacity,  please give
the full title under signature(s).


                                            ------------------------------------
                                                        Signature

                                            ------------------------------------
                                                Signature, if held jointly

                                            ------------------------------------
                                               Dated: _______________, 2001


</TEXT>
</DOCUMENT>
