EX-99.77B ACCT LTTR 3 nsarlettereea.htm

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders
of The European Equity Fund, Inc.


In planning and performing our audit of the financial statements of The European Equity Fund, Inc. (the
Fund) as of and for the year ended December 31, 2006, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), we considered the Fund's internal control over
financial reporting, including control activities for safeguarding securities, as a basis for designing our
auditing procedures for the purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of the Fund's internal control over financial reporting.

The management of the Fund is responsible for establishing and maintaining effective internal control
over financial reporting.  In fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of controls.  A Fund's internal control over
financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles.  Such internal control over financial reporting includes policies
and procedures that provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of a Fund's assets that could have a material effect on the
financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the Fund's ability to initiate, authorize, record, process or report
external financial data reliably in accordance with generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the Fund's annual or interim financial
statements that is more than inconsequential will not be prevented or detected.  A material weakness is a
control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that
a material misstatement of the annual or interim financial statements will not be prevented or detected.

Our consideration of the Fund's internal control over financial reporting was for the limited purpose
described in the first paragraph and would not necessarily disclose all deficiencies in internal control over
financial reporting that might be significant deficiencies or material weaknesses under standards
established by the Public Company Accounting Oversight Board (United States).  However, we noted no
deficiencies in the Fund's internal control over financial reporting and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined above as of December
31, 2006.








This report is intended solely for the information and use of management and the Board of Directors of
the Fund and the Securities and Exchange Commission and is not intended to be and should not be used
by anyone other than these specified parties.




February 23, 2007





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