UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06044

Morgan Stanley Europe Opportunity Fund Inc.

(Exact name of registrant as specified in charter)

	522 Fifth Avenue, New York, New York	10036
	(Address of principal executive offices)	(Zip code)

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

Registrant's telephone number, including area code: 212-296-0289

Date of fiscal year end: October 31,

Date of reporting period: April 30, 2020

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley
Europe Opportunity Fund, Inc.

(formerly Morgan Stanley European Equity Fund Inc.)

Semi-Annual Report

April 30, 2020

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission ("SEC"), paper copies of the Fund's Annual and Semi-Annual Reports to Shareholders ("Shareholder Reports") will no longer be sent by mail, unless you specifically request paper copies of the Shareholder Reports from the Fund or from your financial intermediary, such as a broker-dealer or a bank. Instead, the Shareholder Reports will be made available on the Fund's website, https://www.morganstanley.com/im/shareholderreports and you will be notified by mail each time a Shareholder Report is posted and provided with a website link to access the Shareholder Report. If you already elected to receive Shareholder Reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive Shareholder Reports and other communications from the Fund electronically anytime by contacting your financial intermediary or, if you are a direct investor, please follow the instructions on the envelope.

Beginning on January 1, 2019, you may elect to receive all future Shareholder Reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your Shareholder Reports. If you invest directly with the Fund, please follow the instructions on the envelope to let the Fund know you wish to continue receiving paper copies of your Shareholder Reports. Your election to receive Shareholder Reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with a fund.

Morgan Stanley Europe Opportunity Fund, Inc.

Table of Contents

Welcome Shareholder					3
Fund Report					4
Performance Summary					7
Expense Example					8
Portfolio of Investments					10
Statement of Assets and Liabilities					13
Statement of Operations					14
Statements of Changes in Net Assets					15
Notes to Financial Statements					16
Financial Highlights					30
Liquidity Risk Management Program					34
Privacy Notice					35

Welcome Shareholder,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Morgan Stanley Europe Opportunity Fund, Inc. (the "Fund") (formerly Morgan Stanley European Equity Fund Inc.) performed during the latest six-month period. It includes an overview of the market conditions and discusses some of the factors that affected performance during the reporting period. In addition, the report contains financial statements and a list of portfolio holdings.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management and look forward to working with you in the months and years ahead.

This material must be preceded or accompanied by a prospectus for the fund being offered.

Market forecasts provided in this report may not necessarily come to pass. There is no assurance that the Fund will achieve its investment objective. The Fund is subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

Fund Report (unaudited)

For the six months ended April 30, 2020

Total Return for the 6 Months Ended April 30, 2020

Class A

Class L

Class I

Class C

MSCI
Europe
Index¹

Lipper
European
Region
Funds
Index²

–2.40

–2.63

–2.27

–2.82

–15.47

–12.26

The performance of Morgan Stanley Europe Opportunity Fund, Inc's. (the "Fund") four share classes varies because each has different expenses. The Fund's total returns assume the reinvestment of all distributions but do not reflect the deduction of any applicable sales charges. Such costs would lower performance. See Performance Summary for standardized performance and benchmark information.

Market Conditions

European equities declined during the six-month period ended April 30, 2020. Stronger performance earlier in the period was offset by a broad sell-off in the latter months due to concerns regarding COVID-19 and its potential impacts to global economic activity. Nearly every sector in the MSCI Europe Index (the "Index") fell, led by energy, while health care was the best performing sector.

Performance Analysis

All share classes of the Fund outperformed both the Index and the Lipper European Region Funds Index for the six months ended April 30, 2020, assuming no deduction of applicable sales charges.

Effective April 14, 2020, the Morgan Stanley European Equity Fund Inc. was renamed to Morgan Stanley Europe

Opportunity Fund, Inc., the portfolio management team changed and the investment approach was revised. Prior to this date, the investment approach was "Seeks capital appreciation by investing in European companies that the investment team believes possess a prominent and sustainable position in their field, potentially enabling superior profitability and investment returns. The investment team combines quantitative filters with rigorous qualitative analysis to create a concentrated, high conviction portfolio." The portfolio performance discussion is reported as of April 14, 2020 (prior to the effective date) and does not reflect these amendments.

For the period October 31, 2019 through April 14, 2020, the Fund outperformed the Index due to stock selection and sector allocation. The top contributors to relative performance included health care, financials (where the Fund had no exposure to the sector's weak performance) and industrials. The top detractors from relative performance included consumer discretionary, cash and utilities. The utilities sector outperformed the market, but the Fund had no exposure to the sector, which therefore detracted from relative performance. For the period April 14, 2020 to April 30, 2020, the performance timeframe is too short to provide a meaningful analysis and would not represent the Fund's long-term performance potential.

There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Fund in the future.

TOP 10 HOLDINGS as of 04/30/20
DSV A/S	8.6	%
Moncler SpA	6.9
EPAM Systems, Inc.	6.3
Adyen N.V.	5.3
Spotify Technology SA	5.0
Hermes International	4.4
HelloFresh SE	4.3
Farfetch Ltd., Class A	4.3
Takeaway.com N.V.	4.2
Fevertree Drinks PLC	4.0
TOP FIVE COUNTRIES as of 04/30/20
United Kingdom	15.9	%
United States	15.6
Netherlands	13.0
Italy	9.9
Germany	9.9

Subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned above. Top 10 holdings and top five countries are as a percentage of net assets.

Morgan Stanley is a full-service securities firm engaged in securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services.

Investment Strategy

Under normal market conditions, the Fund's "Adviser," Morgan Stanley Investment Management Inc., seeks to achieve the Fund's investment objective by investing primarily in high quality established and emerging companies located in Europe that the investment team believes are undervalued at the time of purchase.

For More Information About Portfolio Holdings

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual Reports and the Annual Reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public web site, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public web site. However, the holdings for each money market fund are posted to the money market public website. You may, however, obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's web site, http://www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's e-mail address (publicinfo@sec.gov).

Proxy Voting Policy and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures without charge, upon request, by calling toll free (800) 548-7786 or by visiting the Mutual Fund Center on our web site at www.morganstanley.com/im/shareholderreports. It is also available on the SEC's web site at http://www.sec.gov.

You may obtain information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 without charge by visiting the Mutual Fund Center on our web site at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's web site at http://www.sec.gov.

Householding Notice

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling (800) 548-7786, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

Performance Summary (unaudited)

Average Annual Total Returns—Period Ended April 30, 2020

Symbol

Class A Shares*
(since 07/28/97)
EUGAX

Class L Shares**
(since 07/28/97)
EUGCX

Class I Shares***
(since 07/28/97)
EUGDX

Class C Shares^†(since 04/30/15)
MSEEX

1 Year

3.22
–2.20⁴

%³

2.69
—

%³

3.55
—

%³

2.41
1.42⁴

%³

5 Years

1.02³–0.07⁴

0.51³—

1.37³—

0.25³0.25⁴

10 Years

4.61³4.05⁴

4.01³—

4.94³—

—
—

Since Inception

4.36³4.11⁴

3.65³—

4.69³—

0.25³0.25⁴

Gross Expense Ratio

1.65

2.31

1.36

3.10

Performance data quoted represents past performance, which is no guarantee of future results and current performance may be lower or higher than the figures shown. For most recent month-end performance figures, please visit www.morganstanley.com/im/shareholderreports or speak with your Financial Advisor. Investment returns and principal value will fluctuate and fund shares, when redeemed, may be worth more or less than their original cost. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Performance for Class A, Class L, Class I and Class C shares will vary due to differences in sales charges and expenses. See the Fund's current prospectus for complete details on fees and sales charges. Expense ratios are as of each Fund's fiscal year end as outlined in the Fund's current prospectus.

* The maximum front-end sales charge for Class A is 5.25%.

** Class L has no sales charge. Class L shares are closed to new investments.

*** Class I has no sales charge.

† The maximum contingent deferred sales charge for Class C is 1.0% for shares redeemed within one year of purchase.

(1) The MSCI Europe Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. "Net dividends" reflects a reduction in dividends after taking into account withholding of taxes by certain foreign countries represented in the Index. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

(2) The Lipper European Region Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper European Region Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 10 funds represented in this Index. The Fund was in the Lipper European Region Funds classification as of the date of this report.

(3) Figure shown assumes reinvestment of all distributions and does not reflect the deduction of any sales charges.

(4) Figure shown assumes reinvestment of all distributions and the deduction of the maximum applicable sales charge. See the Fund's current prospectus for complete details on fees and sales charges.

Expense Example (unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 11/01/19 – 04/30/20.

Actual Expenses

The first line of the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table on the following page provides information about hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) and redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Example (unaudited) continued

	Beginning Account Value		Ending Account Value		Expenses Paid During Period⁽¹⁾
	11/01/19		04/30/20		11/01/19 – 04/30/20
Class A
Actual (–2.40% return)	$	1,000.00	$	976.00	$	6.78
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,018.00	$	6.92
Class L
Actual (–2.63% return)	$	1,000.00	$	973.70	$	9.32
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,015.42	$	9.52
Class I
Actual (–2.27% return)	$	1,000.00	$	977.30	$	5.16
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,019.64	$	5.27
Class C
Actual (–2.82% return)	$	1,000.00	$	971.80	$	10.54
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,014.17	$	10.77

(1) Expenses are equal to the Fund's annualized expense ratios of 1.38%, 1.90%, 1.05%, and 2.15% for Class A, Class L, Class I and Class C shares, respectively, multiplied by the average account value over the period and multiplied by 182/366 (to reflect the one-half year period). If the Fund had borne all of its expenses, the annualized expense ratios would have been 1.59%, 2.25%, 1.32% and 2.58% for Class A, Class L, Class I and Class C shares, respectively.

Effective April 30, 2020, the Board of Directors of the Fund approved the elimination of redemption fees charged by the Fund.

Morgan Stanley Europe Opportunity Fund, Inc.

Portfolio of Investments n April 30, 2020 (unaudited)

NUMBER OF SHARES			VALUE
		Common Stocks (94.3%)
		Denmark (8.6%)
		Air Freight & Logistics
	77,308	DSV A/S	$	8,032,316
		France (6.9%)
		Software
	15,720	Dassault Systemes SE		2,302,513
		Textiles, Apparel & Luxury Goods
	5,654	Hermes International		4,133,469
		Total France		6,435,982
		Germany (9.9%)
		Internet & Direct Marketing Retail
	112,736	HelloFresh SE (a)		4,018,273
		Textiles, Apparel & Luxury Goods
	11,090	Adidas AG		2,538,860
	42,081	Puma SE		2,643,338
				5,182,198
		Total Germany		9,200,471
		Italy (9.9%)
		Beverages
	363,669	Davide Campari-Milano SpA		2,826,565
		Textiles, Apparel & Luxury Goods
	169,515	Moncler SpA		6,374,931
		Total Italy		9,201,496
		Netherlands (13.0%)
		Information Technology Services
	5,028	Adyen N.V. (a)		4,970,685
		Internet & Direct Marketing Retail
	37,807	Takeaway.com N.V. (a)		3,886,226

NUMBER OF SHARES			VALUE
		Semiconductors & Semiconductor Equipment
	11,166	ASML Holding N.V.	$	3,261,424
		Total Netherlands		12,118,335
		Sweden (5.8%)
		Biotechnology
	141,136	Vitrolife AB		2,560,990
		Hotels, Restaurants & Leisure
	61,749	Evolution Gaming Group AB		2,827,892
		Total Sweden		5,388,882
		Switzerland (8.7%)
		Food Products
	29	Chocoladefabriken Lindt & Spruengli AG (Registered)		2,434,734
		Health Care Equipment & Supplies
	3,867	Straumann Holding AG (Registered)		2,942,119
		Marine
	18,849	Kuehne & Nagel International AG (Registered)		2,696,203
		Total Switzerland		8,073,056
		United Kingdom (15.9%)
		Beverages
	68,745	Diageo PLC		2,366,880
	169,295	Fevertree Drinks PLC		3,695,068
				6,061,948
		Biotechnology
	160,692	Abcam PLC		2,572,321
		Interactive Media & Services
	545,189	Rightmove PLC		3,408,759
		Internet & Direct Marketing Retail
	665,529	boohoo Group PLC (a)		2,704,326
		Total United Kingdom		14,747,354

See Notes to Financial Statements
10

Morgan Stanley Europe Opportunity Fund, Inc.

Portfolio of Investments n April 30, 2020 (unaudited) continued

NUMBER OF SHARES			VALUE
		United States (15.6%)
		Entertainment
	30,497	Spotify Technology SA (a)	$	4,622,430
		Information Technology Services
	26,539	EPAM Systems, Inc. (a)		5,862,199
		Internet & Direct Marketing Retail
	302,103	Farfetch Ltd., Class A (a)(b)		3,999,844
		Total United States		14,484,473
		Total Common Stocks (Cost $79,307,545)		87,682,365
NUMBER OF SHARES (000)
		Short-Term Investments (9.2%)
		Securities held as Collateral on Loaned Securities (4.2%)
		Investment Company (4.1%)
	3,850	Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (See Note 6)		3,850,317
PRINCIPAL AMOUNT (000)
		Repurchase Agreement (0.1%)
$	102	Merrill Lynch & Co., Inc. (0.01%, dated 4/30/20, due 5/01/20; proceeds $102,198; fully collateralized by a U.S. Government obligation; 0.63% due 4/15/23; valued at $104,242)		102,198
		Total Securities held as Collateral on Loaned Securities (Cost $3,952,515)		3,952,515

NUMBER OF SHARES (000)					VALUE
		Investment Company (5.0%)
	4,665	Morgan Stanley Institutional Liquidity Funds – Treasury Securities Portfolio – Institutional Class (See Note 6) (Cost $4,664,737)			$	4,664,737
		Total Short-Term Investments (Cost $8,617,252)				8,617,252
Total Investments (Cost $87,924,797) (c)(d)			103.5	%		96,299,617
Liabilities in Excess of Other Assets			(3.5	)		(3,287,015	)
Net Assets			100.0	%	$	93,012,602

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(a) Non-income producing security.

(b) All or a portion of this security was on loan at April 30, 2020.

(c) The fair value and percentage of net assets, $73,197,892 and 78.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note 1-A within the Notes to the Financial Statements.

(d) At April 30, 2020, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $8,947,933 and the aggregate gross unrealized depreciation is $573,113, resulting in net unrealized appreciation of $8,374,820.

See Notes to Financial Statements
11

Morgan Stanley Europe Opportunity Fund, Inc.

Portfolio of Investments n April 30, 2020 (unaudited) continued

Summary of Investments

INDUSTRY	VALUE			PERCENT OF TOTAL INVESTMENTS
Textiles, Apparel & Luxury Goods	$	15,690,598			17.0	%
Internet & Direct Marketing Retail		14,608,669			15.8
Information Technology Services		10,832,884			11.7
Beverages		8,888,513			9.6
Air Freight & Logistics		8,032,316			8.7
Biotechnology		5,133,311			5.6
Investment Company		4,664,737			5.1
Entertainment		4,622,430			5.0
Interactive Media & Services		3,408,759			3.7
Semiconductors & Semiconductor Equipment		3,261,424			3.5
Health Care Equipment & Supplies		2,942,119			3.2
Hotels, Restaurants & Leisure		2,827,892			3.1
Marine		2,696,203			2.9
Food Products		2,434,734			2.6
Software		2,302,513			2.5
	$	92,347,102	⁺		100.0	%

+ Does not reflect the value of securities held as collateral on loaned securities.

See Notes to Financial Statements
12

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Statements

Statement of Assets and Liabilities April 30, 2020 (unaudited)

Assets:
Investments in securities, at value (cost $79,409,743) (Including $3,999,844 for securities loaned)	$	87,784,563
Investment in affiliate, at value (cost $8,515,054)		8,515,054
Total investments in securities, at value (cost $87,924,797)		96,299,617
Cash (including foreign currency valued at $215,728 with a cost of $214,842)		215,728
Receivable from Distributor		34,128
Receivable for:
Foreign withholding taxes reclaimed		534,615
Dividends		117,673
Capital stock sold		78,684
Investments sold		481
Dividends from affiliate		474
Securities lending income		409
Prepaid expenses and other assets		68,291
Total Assets		97,350,100
Liabilities:
Collateral on securities loaned, at value		3,952,515
Payable for:
Capital stock redeemed		93,180
Investments purchased		57,939
Transfer and sub transfer agent fees		47,592
Directors' fees		42,462
Advisory fee		41,317
Distribution fee		17,889
Administration fee		5,802
Accrued expenses and other payables		78,802
Total Liabilities		4,337,498
Net Assets	$	93,012,602
Composition of Net Assets:
Paid-in-capital	$	70,756,653
Total Distributable Earnings		22,255,949
Net Assets	$	93,012,602
Class A Shares:
Net Assets	$	84,417,962
Shares Outstanding (500,000,000 shares authorized, $0.01 par value)		4,543,128
Net Asset Value Per Share	$	18.58
Maximum Offering Price Per Share, (net asset value plus 5.54% of net asset value)	$	19.61
Class L Shares:
Net Assets	$	1,659,771
Shares Outstanding (500,000,000 shares authorized, $0.01 par value)		93,561
Net Asset Value Per Share	$	17.74
Class I Shares:
Net Assets	$	6,230,518
Shares Outstanding (500,000,000 shares authorized, $0.01 par value)		321,934
Net Asset Value Per Share	$	19.35
Class C Shares:
Net Assets	$	704,351
Shares Outstanding (500,000,000 shares authorized, $0.01 par value)		40,220
Net Asset Value Per Share	$	17.51

See Notes to Financial Statements
13

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Statements continued

Statement of Operations For the six months ended April 30, 2020 (unaudited)

Net Investment Income: Income
Dividends (net of $118,788 foreign withholding tax)	$	884,099
Dividends from affiliate (Note 6)		4,985
Income from securities loaned - net		1,246
Total Income		890,330
Expenses
Advisory fee (Note 3)		427,571
Distribution fee (Class A shares) (Note 4)		110,598
Distribution fee (Class L shares) (Note 4)		6,674
Distribution fee (Class C shares) (Note 4)		3,343
Professional fees		66,149
Administration fee (Note 3)		39,317
Sub transfer agent fees and expenses (Class A shares)		33,716
Sub transfer agent fees and expenses (Class L shares)		696
Sub transfer agent fees and expenses (Class I shares)		2,302
Sub transfer agent fees and expenses (Class C shares)		166
Registration fees		26,358
Shareholder reports and notices		20,809
Transfer agent fees and expenses (Class A shares) (Note 5)		15,302
Transfer agent fees and expenses (Class L shares) (Note 5)		1,736
Transfer agent fees and expenses (Class I shares) (Note 5)		1,143
Transfer agent fees and expenses (Class C shares) (Note 5)		1,007
Custodian fees (Note 9)		10,461
Directors' fees and expenses		3,899
Other		7,184
Total Expenses		778,431
Less: waiver of Advisory fees (Note 3)		(85,605	)
Less: reimbursement of class specific expenses (Class A shares) (Note 3)		(13,585	)
Less: reimbursement of class specific expenses (Class L shares) (Note 3)		(1,543	)
Less: reimbursement of class specific expenses (Class I shares) (Note 3)		(3,485	)
Less: reimbursement of class specific expenses (Class C shares) (Note 3)		(838	)
Less: rebate from Morgan Stanley affiliated cash sweep (Note 6)		(982	)
Net Expenses		672,393
Net Investment Income		217,937
Realized and Unrealized Gain (Loss): Realized Gain on:
Investments		14,084,176
Foreign currency translation		10,283
Net Realized Gain		14,094,459
Change in Unrealized Appreciation (Depreciation) on:
Investments		(16,782,244	)
Foreign currency translation		1,968
Net Change in Unrealized Appreciation (Depreciation)		(16,780,276	)
Net Loss		(2,685,817	)
Net Decrease	$	(2,467,880	)

See Notes to Financial Statements
14

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Statements continued

Statements of Changes in Net Assets

	FOR THE SIX MONTHS ENDED APRIL 30, 2020			FOR THE YEAR ENDED OCTOBER 31, 2019
	(unaudited)
Increase (Decrease) in Net Assets: Operations:
Net investment income	$	217,937		$	634,541
Net realized gain		14,094,459			4,166,710
Net change in unrealized appreciation (depreciation)		(16,780,276	)		7,041,414
Net Increase (Decrease)		(2,467,880	)		11,842,665
Dividends and Distributions to Shareholders:
Class A shares		(2,955,869	)		(25,234	)
Class B shares*		—			(562,928	)
Class L shares		(251,313	)		(217	)
Class I shares		(50,934	)		(59,851	)
Class C shares		(21,436	)		—
Total Dividends and Distributions to Shareholders		(3,279,552	)		(648,230	)
Net decrease from capital stock transactions		(2,554,017	)		(10,892,827	)
Redemption Fees		—			79
Net Increase (Decrease)		(8,301,449	)		301,687
Net Assets:
Beginning of period		101,314,051			101,012,364
End of Period	$	93,012,602		$	101,314,051

* All Class B shares were redeemed/converted to Class A shares as of July 26, 2019.

See Notes to Financial Statements
15

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited)

1. Organization and Accounting Policies

Morgan Stanley Europe Opportunity Fund, Inc. (the "Fund") (name changed on April 14, 2020, formerly Morgan Stanley European Equity Fund Inc.) is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund applies investment company accounting and reporting guidance. The Fund's investment objective is to maximize the capital appreciation of its investments. The Fund was incorporated in Maryland on February 13, 1990 and commenced operations on June 1, 1990. On July 28, 1997, the Fund converted to a multiple class share structure.

The Fund offers Class A shares, Class L shares, Class I shares and Class C shares. The four classes are substantially the same except that most Class A shares are subject to a sales charge imposed at the time of purchase and some Class A shares and most Class C shares are subject to a contingent deferred sales charge imposed on shares redeemed within eighteen months and one year, respectively. Class L shares and Class I shares are not subject to a sales charge. Additionally, Class A shares, Class L shares and Class C shares incur distribution expenses.

The Fund suspended offering Class L shares to all investors (April 30, 2015). Class L shareholders of the Fund do not have the option of purchasing additional Class L shares. However, the existing Class L shareholders may invest through reinvestment of dividends and distributions.

The Fund will assess a 2% redemption fee on Class A shares, Class L shares, Class I shares and Class C shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets. Effective April 30, 2020, the Board of Directors of the Fund approved the elimination of redemption fees charged by the Fund.

The following is a summary of significant accounting policies:

In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-13, Fair Value Measurement (Topic 820) — Disclosures Framework — Changes to Disclosure Requirements of Fair Value Measurement ("ASU 2018-13") which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years; however, management has elected to early adopt ASU 2018-13 as permitted by the standard. The impact of the Fund's adoption was limited to changes in the Fund's financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy and disclosure of the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, when applicable.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

A. Valuation of Investments — (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Fund's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), (effective April 14, 2020, MSIM Limited is no longer a Sub-Adviser to the Fund, a wholly-owned subsidiary of Morgan Stanley), determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business on the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Directors have responsibility for determining in good faith the fair value of the investments, and the Directors may appoint others, such as the Fund's Adviser or a valuation committee, to assist the Directors in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Directors. Under procedures approved by the Directors, the Fund's Adviser has formed a Valuation Committee whose members are approved by the Directors. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Directors. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

B. Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Dividend income and other distributions are recorded on the ex-dividend date, except for certain dividends on foreign securities which are recorded as soon as the Fund is informed after the ex-dividend date. Discounts are accreted and premiums are amortized over the life of the respective securities and are included in interest income. Interest income is accrued daily as earned.

C. Multiple Class Allocations — Investment income, realized and unrealized gain (loss) and non-class specific expenses are allocated daily based upon the proportion of net assets of each class. Class specific expenses are borne by the respective share classes and include Distribution, Transfer Agent and Sub Transfer Agent fees.

D. Foreign Currency Translation and Foreign Investments — The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

— investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

— investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. The change in unrealized currency gains (losses) on foreign currency transactions for the period is reflected in the Statement of Operations.

E. Securities Lending — The Fund may lend securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Fund. The Fund receives cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from securities loaned — net" in the Fund's Statement of Operations.

The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

The following table presents financial instruments that are subject to enforceable netting arrangements as of April 30, 2020:

GROSS AMOUNTS NOT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES

GROSS ASSET AMOUNT PRESENTED IN THE STATEMENT OF ASSETS AND LIABILITIES				FINANCIAL INSTRUMENT				COLLATERAL RECEIVED				NET AMOUNT (NOT LESS THAN $0)
$	3,999,844	(a)		$	—			$	(3,999,844	)(b)(c)		$	0

(a) Represents market value of loaned securities at period end.

(b) The Fund received cash collateral of $3,952,515, which was subsequently invested in Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of April 30, 2020, there was non-cash collateral of $50,350, which is not reflected in the Portfolio of Investments.

(c) The actual collateral received is greater than the amount shown here due to overcollateralization.

FASB Accounting Standards Codification^TM ("ASC") 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of April 30, 2020:

	REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
	OVERNIGHT AND CONTINUOUS		<30 DAYS		BETWEEN 30 & 90 DAYS		>90 DAYS		TOTAL
Securities Lending Transactions
Common Stocks	$	3,952,515	$	—	$	—	$	—	$	3,952,515
Total Borrowings	$	3,952,515	$	—	$	—	$	—	$	3,952,515
Gross amount of recognized liabilities for securities lending transactions									$	3,952,515

F. Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

G. Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

H. Indemnifications — The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

2. Fair Valuation Measurements

FASB Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs); and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 — unadjusted quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

The following is a summary of the inputs used to value the Fund's investments as of April 30, 2020:

INVESTMENT TYPE	LEVEL 1 UNADJUSTED QUOTED PRICES		LEVEL 2 OTHER SIGNIFICANT OBSERVABLE INPUTS		LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS		TOTAL
Assets:
Common Stocks
Air Freight & Logistics	$	—	$	8,032,316	$	—	$	8,032,316
Beverages		—		8,888,513		—		8,888,513
Biotechnology		—		5,133,311		—		5,133,311
Entertainment		4,622,430		—		—		4,622,430
Food Products		—		2,434,734		—		2,434,734
Health Care Equipment & Supplies		—		2,942,119		—		2,942,119
Hotels, Restaurants & Leisure		—		2,827,892		—		2,827,892
Information Technology Services		5,862,199		4,970,685		—		10,832,884
Interactive Media & Services		—		3,408,759		—		3,408,759
Internet & Direct Marketing Retail		3,999,844		10,608,825		—		14,608,669
Marine		—		2,696,203		—		2,696,203
Semiconductors & Semiconductor Equipment		—		3,261,424		—		3,261,424
Software		—		2,302,513		—		2,302,513
Textiles, Apparel & Luxury Goods		—		15,690,598		—		15,690,598
Total Common Stocks		14,484,473		73,197,892		—		87,682,365
Short-Term Investments
Investment Company		8,515,054		—		—		8,515,054
Repurchase Agreement		—		102,198		—		102,198
Total Short-Term Investments		8,515,054		102,198		—		8,617,252
Total Assets	$	22,999,527	$	73,300,090	$	—	$	96,299,617

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

3. Advisory/Administration and Sub-Advisory Agreements

Pursuant to an Investment Advisory Agreement with the Adviser, the Fund pays an advisory fee, accrued daily and paid monthly, by applying the following annual rates to the net assets of the Fund determined as of the close of each business day: 0.87% to the portion of the daily net assets not exceeding $500 million; 0.82% to the portion of the daily net assets exceeding $500 million but not exceeding $2 billion; 0.77% to the portion of the daily net assets exceeding $2 billion but not exceeding $3 billion; and 0.745% to the portion of the daily net assets exceeding $3 billion. For the six months ended

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

April 30, 2020, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.69% of the Fund's average daily net assets.

The Adviser also serves as the Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.

Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

Under a Sub-Advisory Agreement between the Adviser and the Sub-Adviser, the Sub-Adviser provides the Fund with advisory services, subject to the overall supervision of the Adviser and the Fund's Officers and Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Effective April 14, 2020, MSIM Limited is no longer a Sub-Adviser to the Fund.

The Adviser/Administrator has agreed to reduce its advisory fee, its administration fee and/or reimburse the Fund so that total annual operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.38% for Class A, 1.90% for Class L, 1.05% for Class I and 2.15% for Class C. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers and/or expense reimbursements when they deem such action is appropriate. For the six months ended April 30, 2020, $85,605 of advisory fees were waived and $19,451 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

4. Plan of Distribution

Shares of the Fund are distributed by Morgan Stanley Distribution, Inc. (the "Distributor"), an affiliate of the Adviser/Administrator and Sub-Adviser. The Fund has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. The Plan provides that the Fund will pay the Distributor a fee which is accrued daily and paid monthly at the following annual rates: (i) Class A — up to 0.25% of the average daily net assets of Class A shares; (ii) Class L — up to 0.75% of the average daily net assets of Class L shares; and (iii) Class C — up to 1.00% of the average daily net assets of Class C shares.

In the case of Class A shares, Class L shares and Class C shares, expenses incurred pursuant to the Plan in any calendar year in excess of 0.25%, 0.75% and 1.00% of the average daily net assets of Class A shares, Class L shares and Class C shares, respectively, will not be reimbursed by the Fund

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

through payments in any subsequent year, except that expenses representing a gross sales commission credited to Financial Intermediaries at the time of sale may be reimbursed in the subsequent calendar year. For the six months ended April 30, 2020, the distribution fee was accrued for Class A shares, Class L shares and Class C shares at the annual rate of 0.25%, 0.75% and 1.00%, respectively.

The Distributor has informed the Fund that for the six months ended April 30, 2020, it received contingent deferred sales charges from certain redemptions of the Fund's Class A shares of $3 and received $113 in front-end sales charges from sales of the Fund's Class A shares. Class A shareholders pay such charges, which are not an expense of the Fund.

5. Dividend Disbursing and Transfer Agent

The Fund's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Fund pays DST a fee based on the number of classes, accounts and transactions relating to the Fund.

6. Security Transactions and Transactions with Affiliates

The cost of purchases and proceeds from sales of investment securities, excluding short-term investments, for the six months ended April 30, 2020, aggregated $77,190,126 and $87,351,867, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended April 30, 2020, advisory fees paid were reduced by $982 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended April 30, 2020 is as follows:

AFFILIATED INVESTMENT COMPANY				VALUE OCTOBER 31, 2019				PURCHASES AT COST				PROCEEDS FROM SALES				DIVIDEND INCOME				REALIZED GAIN (LOSS)				CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)				VALUE APRIL 30, 2020
Liquidity Funds				$	258,100			$	16,709,292			$	8,452,338			$	4,985			$	—			$	—			$	8,515,054

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Directors of the Fund who will have served as independent Directors for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Directors voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the six months ended April 30, 2020, included in "Directors' fees and expenses" in the Statement of Operations amounted to $122. At April 30, 2020, the Fund had an accrued pension liability of $42,462, which is reflected as "Directors' fees" in the Statement of Assets and Liabilities.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended April 30, 2020, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

7. Purposes of and Risks Relating to Certain Financial Instruments

At April 30, 2020, investments in securities of issuers in the Germany, Switzerland and United Kingdom represented 9.9%, 8.7% and 15.9%, respectively, of the Fund's net assets. These investments, as well as other non-U.S. investments, which involve risks and considerations not present with respect to U.S. securities, may be affected by economic or political developments in these countries.

The Fund may lend securities to qualified financial institutions, such as broker-dealers, to earn additional income. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors,

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

8. Capital Stock

Transactions in capital stock were as follows:

	FOR THE SIX MONTHS ENDED APRIL 30, 2020						FOR THE YEAR ENDED OCTOBER 31, 2019
	(unaudited)
	SHARES			AMOUNT			SHARES			AMOUNT
CLASS A SHARES
Sold		14,423		$	276,892			48,395		$	849,493
Conversion from Class B		—			—			4,799,637			86,707,663
Reinvestment of dividends and distributions		143,512			2,848,715			1,539			24,569
Redeemed		(324,827	)		(6,113,037	)		(499,885	)		(9,115,997	)
Net increase (decrease) — Class A		(166,892	)		(2,987,430	)		4,349,686			78,465,728
CLASS B SHARES*
Exchanged		—			—			1,395			16,591
Conversion to Class A		—			—			(5,078,307	)		(86,707,663	)
Reinvestment of dividends		—			—			35,600			536,852
Redeemed		—			—			(260,355	)		(4,220,322	)
Net decrease — Class B		—			—			(5,301,667	)		(90,374,542	)
CLASS L SHARES
Exchanged		7			190			—			—
Reinvestment of dividends and distributions		2,658			50,470			14			216
Redeemed		(8,372	)		(149,030	)		(13,528	)		(229,413	)
Net decrease — Class L		(5,707	)		(98,370	)		(13,514	)		(229,197	)
CLASS I SHARES
Sold		245,932			4,787,865			165,217			3,029,121
Reinvestment of dividends and distributions		12,160			251,231			3,612			59,806
Redeemed		(247,832	)		(4,741,287	)		(113,966	)		(2,067,199	)
Net increase — Class I		10,260			297,809			54,863			1,021,728
CLASS C SHARES
Sold		16,995			323,307			20,430			375,051
Reinvestment of dividends and distributions		1,138			21,356			—			—
Redeemed		(5,889	)		(110,689	)		(8,739	)		(151,595	)
Net increase — Class C		12,244			233,974			11,691			223,456
Net decrease in Fund		(150,095	)	$	(2,554,017	)		(898,941	)	$	(10,892,827	)

* All Class B shares were redeemed/converted to Class A shares as of July 26, 2019.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

9. Custodian Fees

State Street (the "Custodian") also serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

10. Federal Income Tax Status

It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.

The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended October 31, 2019 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2019 and 2018 was as follows:

2019 DISTRIBUTIONS PAID FROM: ORDINARY INCOME				2018 DISTRIBUTIONS PAID FROM: ORDINARY INCOME
$	648,230			$	783,997

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to equalization debits, resulted in the following reclassifications among the components of net assets at October 31, 2019:

TOTAL DISTRIBUTABLE EARNINGS				PAID-IN-CAPITAL
$	(1,721,774	)		$	1,721,774

At October 31, 2019, the components of distributable earnings for the Fund on a tax basis were as follows:

UNDISTRIBUTED ORDINARY INCOME				UNDISTRIBUTED LONG-TERM CAPITAL GAIN
$	612,078			$	2,667,456

11. Credit Facility

The Fund and other Morgan Stanley funds participated in a $300,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or 1 month LIBOR rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended April 30, 2020, the Fund did not have any borrowings under the Facility.

12. Other

At April 30, 2020, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 63.8%.

Morgan Stanley Europe Opportunity Fund, Inc.

Notes to Financial Statements n April 30, 2020 (unaudited) continued

13. Subsequent Event

Certain impacts to public health conditions particular to the coronavirus (COVID-19) outbreak could impact the operations and financial performance of certain of the Fund's investments. The extent of the impact to the financial performance of the Fund's Investments will depend on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, and (iv) the effects on the economy overall, all of which are highly uncertain and cannot be predicted. If the financial performance of the Fund's Investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Highlights

Selected ratios and per share data for a share of outstanding throughout each period:

	FOR THE SIX MONTHS ENDED			FOR THE YEAR ENDED OCTOBER 31,
	APRIL 30, 2020			2019			2018			2017			2016⁽¹⁾			2015
	(unaudited)
Class A Shares
Selected Per Share Data:
Net asset value, beginning of period	$	19.65		$	17.50		$	18.76		$	15.39		$	17.47		$	18.89
Income (loss) from investment operations:
Net investment income⁽²⁾		0.04			0.11			0.11			0.10			0.40			0.34
Net realized and unrealized gain (loss)		(0.47	)		2.12			(1.26	)		3.63			(2.15	)		(1.06	)
Total income (loss) from investment operations		(0.43	)		2.23			(1.15	)		3.73			(1.75	)		(0.72	)
Less distributions from:
Net investment Income		(0.12	)		(0.08	)		(0.11	)		(0.36	)		(0.33	)		(0.70	)
Net realized gain		(0.52	)		—			—			—			—			—
Total distributions		(0.64	)		(0.08	)		(0.11	)		(0.36	)		(0.33	)		(0.70	)
Redemption fees		—			0.00	⁽⁷⁾		—			—			—			—
Net asset value, end of period	$	18.58		$	19.65		$	17.50		$	18.76		$	15.39		$	17.47
Total Return⁽³⁾		(2.40)%	⁽⁸⁾		12.88%			(6.14)%			24.77%			(10.13)%			(3.92)%
Ratios to Average Net Assets:
Net expenses		1.38%	^(4)(5)(9)		1.38%	⁽⁴⁾⁽⁵⁾		1.40%	⁽⁴⁾⁽⁵⁾		1.40%	⁽⁴⁾⁽⁵⁾		1.40%	⁽⁴⁾⁽⁵⁾		1.40%	⁽⁴⁾⁽⁵⁾
Net investment income		0.43%	^(4)(5)(9)		0.58%	⁽⁴⁾⁽⁵⁾		0.61%	⁽⁴⁾⁽⁵⁾		0.59%	⁽⁴⁾⁽⁵⁾		2.50%	⁽⁴⁾⁽⁵⁾		1.86%	⁽⁴⁾⁽⁵⁾
Rebate from Morgan Stanley affiliate		0.00%	⁽⁶⁾⁽⁹⁾		0.00%	⁽⁶⁾		0.00%	⁽⁶⁾		0.00%	⁽⁶⁾		0.00%	⁽⁶⁾		0.00%	⁽⁶⁾
Supplemental Data:
Net assets, end of period, in thousands	$	84,418		$	92,562		$	6,307		$	7,719		$	6,693		$	11,518
Portfolio turnover rate		80%⁽⁸⁾			13%			11%			65%			23%			25%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The annualized expense and net investment income ratios would be unchanged as the reimbursement of custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) The per share amounts were computed using an average number of shares outstanding during the period.

(3) Does not reflect the deduction of sales charge. Calculated based on the net asset value as of the last business day of the period.

(4) The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as "Rebate from Morgan Stanley affiliate."

(5) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
April 30, 2020		1.59	%		0.22	%
October 31, 2019		1.65			0.31
October 31, 2018		1.62			0.39
October 31, 2017		1.72			0.27
October 31, 2016		1.60			2.30
October 31, 2015		1.63			1.63

(6) Amount is less than 0.005%.

(7) Amount is less than $0.005 per share.

(8) Not annualized.

(9) Annualized.

See Notes to Financial Statements
30

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Highlights continued

	FOR THE SIX MONTHS ENDED			FOR THE YEAR ENDED OCTOBER 31,
	APRIL 30, 2020			2019			2018			2017			2016⁽¹⁾			2015
	(unaudited)
Class L Shares
Selected Per Share Data:
Net asset value, beginning of period	$	18.72		$	16.68		$	17.88		$	14.69		$	16.66		$	18.05
Income (loss) from investment operations:
Net investment income (loss)⁽²⁾		(0.01	)		0.02			0.01			0.02			0.28			0.22
Net realized and unrealized gain (loss)		(0.45	)		2.02			(1.18	)		3.46			(2.03	)		(1.00	)
Total income (loss) from investment operations		(0.46	)		2.04			(1.17	)		3.48			(1.75	)		(0.78	)
Less distributions from:
Net investment income		(0.00	)⁽³⁾		(0.00	)⁽³⁾		(0.03	)		(0.29	)		(0.22	)		(0.61	)
Net realized gain		(0.52	)		—			—			—			—			—
Total distributions		(0.52	)		(0.00	)⁽³⁾		(0.03	)		(0.29	)		(0.22	)		(0.61	)
Redemption fees		—			0.00	⁽³⁾		—			—			—			—
Net asset value, end of period	$	17.74		$	18.72		$	16.68		$	17.88		$	14.69		$	16.66
Total Return⁽⁴⁾		(2.63)%	⁽⁸⁾		12.24%			(6.56)%			24.16%			(10.59)%			(4.40)%
Ratios to Average Net Assets:
Net expenses		1.90%	^(5)(5)(9)		1.90%	⁽⁵⁾⁽⁶⁾		1.90%	⁽⁵⁾⁽⁶⁾		1.90%	⁽⁵⁾⁽⁶⁾		1.90%	⁽⁵⁾⁽⁶⁾		1.90%	⁽⁵⁾⁽⁶⁾
Net investment income (loss)		(0.08)%	^(5)(6)(9)		0.12%	⁽⁵⁾⁽⁶⁾		0.08%	⁽⁵⁾⁽⁶⁾		0.12%	⁽⁵⁾⁽⁶⁾		1.86%	⁽⁵⁾⁽⁶⁾		1.23%	⁽⁵⁾⁽⁶⁾
Rebate from Morgan Stanley affiliate		0.00%	⁽⁷⁾⁽⁹⁾		0.00%	⁽⁷⁾		0.00%	⁽⁷⁾		0.00%	⁽⁷⁾		0.00%	⁽⁷⁾		0.00%	⁽⁷⁾
Supplemental Data:
Net assets, end of period, in thousands	$	1,660		$	1,859		$	1,881		$	2,350		$	2,143		$	3,190
Portfolio turnover rate		80%	⁽⁸⁾		13%			11%			65%			23%			25%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Loss to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against current expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) The per share amounts were computed using an average number of shares outstanding during the period.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(5) The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as "Rebate from Morgan Stanley affiliate."

(6) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income (loss) ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME (LOSS) RATIO
April 30, 2020		2.25	%		(0.43	)%
October 31, 2019		2.31			(0.29	)
October 31, 2018		2.12			(0.14	)
October 31, 2017		2.39			(0.37	)
October 31, 2016		2.31			1.45
October 31, 2015		2.29			0.84

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

See Notes to Financial Statements
31

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Highlights continued

	FOR THE SIX MONTHS ENDED			FOR THE YEAR ENDED OCTOBER 31,
	APRIL 30, 2020			2019			2018			2017			2016⁽¹⁾			2015
	(unaudited)
Class I Shares
Selected Per Share Data:
Net asset value, beginning of period	$	20.45		$	18.24		$	19.54		$	16.03		$	18.18		$	19.64
Income (loss) from investment operations:
Net investment income⁽²⁾		0.07			0.18			0.17			0.16			0.43			0.39
Net realized and unrealized gain (loss)		(0.49	)		2.20			(1.29	)		3.79			(2.19	)		(1.08	)
Total income (loss) from investment operations		(0.42	)		2.38			(1.12	)		3.95			(1.76	)		(0.69	)
Less distributions from:
Net investment income		(0.16	)		(0.17	)		(0.18	)		(0.44	)		(0.39	)		(0.77	)
Net realized gain		(0.52	)		—			—			—			—			—
Total distributions		(0.68	)		(0.17	)		(0.18	)		(0.44	)		(0.39	)		(0.77	)
Redemption fees		—			0.00	⁽⁷⁾		—			—			—			—
Net asset value, end of period	$	19.35		$	20.45		$	18.24		$	19.54		$	16.03		$	18.18
Total Return⁽³⁾		(2.27)%⁽⁸⁾			13.28%			(5.81)%			25.28	%		(9.83	)%		(3.59	)%
Ratios to Average Net Assets:
Net expenses		1.05%^(4)(5)(9)			1.05%⁽⁴⁾⁽⁵⁾			1.05%⁽⁴⁾⁽⁵⁾			1.05%⁽⁴⁾⁽⁵⁾			1.05%⁽⁴⁾⁽⁵⁾			1.05%⁽⁴⁾⁽⁵⁾
Net investment income		0.75%^(4)(5)(9)			0.98%⁽⁴⁾⁽⁵⁾			0.87%⁽⁴⁾⁽⁵⁾			0.89%⁽⁴⁾⁽⁵⁾			2.61%⁽⁴⁾⁽⁵⁾			2.03%⁽⁴⁾⁽⁵⁾
Rebate from Morgan Stanley affiliate		0.00%⁽⁶⁾⁽⁹⁾			0.00%⁽⁶⁾			0.00%⁽⁶⁾			0.00%⁽⁶⁾			0.00%⁽⁶⁾			0.00%⁽⁶⁾
Supplemental Data:
Net assets, end of period, in thousands	$	6,231		$	6,374		$	4,685		$	5,375		$	542		$	1,034
Portfolio turnover rate		80%⁽⁸⁾			13%			11%			65%			23%			25%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The annualized expense and net investment income ratios would be unchanged as the reimbursement of custodian fees was offset against current expense waivers/reimbursements with no impact to net expenses or net investment income.

(2) The per share amounts were computed using an average number of shares outstanding during the period.

(3) Calculated based on the net asset value as of the last business day of the period.

(5) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME RATIO
April 30, 2020		1.32	%		0.48	%
October 31, 2019		1.36			0.67
October 31, 2018		1.34			0.58
October 31, 2017		1.33			0.61
October 31, 2016		1.71			1.95
October 31, 2015		1.51			1.57

(6) Amount is less than 0.005%.

(7) Amount is less than $0.0005 per share.

(8) Not annualized.

(9) Annualized.

See Notes to Financial Statements
32

Morgan Stanley Europe Opportunity Fund, Inc.

Financial Highlights continued

	FOR THE SIX MONTHS ENDED			FOR THE YEAR ENDED OCTOBER 31,												PERIOD FROM APRIL 30, 2015⁽²⁾TO
	APRIL 30, 2020			2019			2018			2017			2016⁽¹⁾			OCTOBER 31, 2015
	(unaudited)
Class C Shares
Selected Per Share Data:
Net asset value, beginning of period	$	18.58		$	16.59		$	17.80		$	14.56		$	16.64		$	18.41
Income (loss) from investment operations:
Net investment income (loss)⁽³⁾		(0.02	)		(0.06	)		0.00	)⁽⁴⁾		(0.02	)		0.25			0.02
Net realized and unrealized gain (loss)		(0.45	)		2.05			(1.21	)		3.44			(2.03	)		(1.79	)
Total income (loss) from investment operations		(0.47	)		1.99			(1.21	)		3.42			(1.78	)		(1.77	)
Less distributions from:
Net investment income		(0.08	)		—			—			(0.18	)		(0.30	)		—
Net realized gain		(0.52	)		—			—			—			—			—
Total distributions		(0.60	)		—			—			(0.18	)		(0.30	)		—
Redemption fees		—			0.00	⁽⁴⁾		—			—			—			—
Net asset value, end of period	$	17.51		$	18.58		$	16.59		$	17.80		$	14.56		$	16.64
Total Return⁽⁵⁾		(2.82)%	⁽⁹⁾		12.06%			(6.80)%			23.80%			(10.82)%			(9.61)%	⁽⁹⁾
Ratios to Average Net Assets:
Net expenses		2.15%	^(6)(7)(10)		2.15%	⁽⁶⁾⁽⁷⁾		2.15%	⁽⁶⁾⁽⁷⁾		2.15%	⁽⁶⁾⁽⁷⁾		2.15%	⁽⁶⁾⁽⁷⁾		2.15%	^(6)(7)(10)
Net investment income (loss)		(0.22)%	^(6)(7)(10)		(0.34)%	⁽⁶⁾⁽⁷⁾		(0.02)%	⁽⁶⁾⁽⁷⁾		(0.12)%	⁽⁶⁾⁽⁷⁾		1.62%	⁽⁶⁾⁽⁷⁾		0.22%	^(6)(7)(10)
Rebate from Morgan Stanley affiliate		0.00%	^(8)(10)		0.00%	⁽⁸⁾		0.00%	⁽⁸⁾		0.00%	⁽⁸⁾		0.00%	⁽⁸⁾		0.00%	^(8)(10)
Supplemental Data:
Net assets, end of period, in thousands	$	704		$	520		$	270		$	611		$	767		$	1,152
Portfolio turnover rate		80%	⁽⁹⁾		13%			11%			65%			23%			25%

(1) Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Loss to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment loss.

(2) Commencement of Offering.

(3) The per share amounts were computed using an average number of shares outstanding during the period.

(4) Amount is less than $0.005 per share.

(5) Does not reflect the deduction of sales charge. Calculated based on the net asset value as of the last business day of the period.

(6) The ratios reflect the rebate of certain Fund expenses in connection with investments in a Morgan Stanley affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as "Rebate from Morgan Stanley affiliate."

(7) If the Fund had borne all of its expenses that were waived by the Adviser/Administrator, the annualized expense and net investment income (loss) ratios would have been as follows:

PERIOD ENDED	EXPENSE RATIO			NET INVESTMENT INCOME (LOSS) RATIO
April 30, 2020		2.58	%		(0.65	)%
October 31, 2019		3.10			(1.29	)
October 31, 2018		2.68			(0.55	)
October 31, 2017		2.70			(0.67	)
October 31, 2016		2.45			1.32
October 31, 2015		2.54			(0.17	)

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

See Notes to Financial Statements
33

Morgan Stanley Europe Opportunity Fund, Inc.

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of [Directors/Trustees] (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on April 22-23, 2020, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from December 1, 2018, through December 31, 2019, as required under the Liquidity Rule. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

Morgan Stanley Europe Opportunity Fund, Inc.

Privacy Notice (unaudited) April 2019

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: n Social Security number and income n investment experience and risk tolerance n checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our affiliates to market to you	No	We don't share
For our non-affiliates to market to you	No	We don't share

Questions? Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Morgan Stanley Europe Opportunity Fund, Inc.

Privacy Notice (unaudited) continued April 2019

Who we are

Who is providing this notice?

Morgan Stanley Investment Management, Inc. and its affiliated registered investment advisers, registered broker-dealers, and registered and unregistered funds ("MSIM")

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you n open an account or make deposits or withdrawals from your account n buy securities from us or make a wire transfer n give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only n sharing for affiliates' everyday business purposes — information about your creditworthiness n affiliates from using your information to market to you n sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Europe Opportunity Fund, Inc.

Privacy Notice (unaudited) continued April 2019

Definitions

Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. n Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. n MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. n MSIM doesn't jointly market

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

Directors

Frank L. Bowman

Kathleen A. Dennis

Nancy C. Everett

Jakki L. Haussler

Dr. Manuel H. Johnson

Joseph J. Kearns

Michael F. Klein

Patricia Maleski

Michael E. Nugent, Chair of the Board

W. Allen Reed, Vice Chair of the Board

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Independent Registered Public Accounting Firm

Ernst & Young LLP

200 Clarendon Street

Boston, Massachusetts 02116

Legal Counsel

Dechert LLP

1095 Avenue of the Americas

New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,

22nd Floor

New York, New York 10036

Adviser and Administrator

Morgan Stanley Investment Management Inc.

522 Fifth Avenue

New York, New York 10036

The financial statements included herein have been taken from the records of the Fund without examination by the independent auditors and accordingly they do not express an opinion thereon.

This report is submitted for the general information of the shareholders of the Fund. For more detailed information about the Fund, its fees and expenses and other pertinent information, please read its Prospectus. The Fund's Statement of Additional Information contains additional information about the Fund, including its directors. It is available, without charge, by calling (800) 548-7786.

This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective Prospectus. Please read the Prospectus carefully before investing.

Morgan Stanley Distribution, Inc., member FINRA.

EUGSAN
3080059 EXP. 06.30.21

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

Item 11. Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant's internal control over financial reporting that

occurred during the most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.

Not Applicable.

Item 13. Exhibits

(a) Code of Ethics – Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT.

SIGNATURES

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

Morgan Stanley Europe Opportunity Fund Inc.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
June 22, 2020

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

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
June 22, 2020

/s/ Francis Smith
Francis Smith
Principal Financial Officer
June 22, 2020

Date: June 22, 2020
	/s/ John H. Gernon
	John H. Gernon
	Principal Executive Officer