UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                   FORM N-CSRS

Investment Company Act file number 811-04632

                             THE GERMANY FUND, INC.
                           --------------------------
               (Exact Name of Registrant as Specified in Charter)

                       343 Park Avenue, New York, NY 10154
                  --------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

        Registrant's Telephone Number, including Area Code: (212) 454-7190
                                                            --------------

                                  Paul Schubert
                                 345 Park Avenue
                               New York, NY 10154
                     ---------------------------------------
                     (Name and Address of Agent for Service)

Date of fiscal year end:        12/31

Date of reporting period:       06/30/2005



ITEM 1.  REPORT TO STOCKHOLDERS





SUMMARY OF GENERAL INFORMATION
--------------------------------------------------------------------------------
THE FUND

The Germany Fund, Inc. is a  non-diversified,  actively-managed  Closed-End Fund
listed on the New York  Stock  Exchange  with the symbol  "GER".  The Fund seeks
long-term capital appreciation  primarily through investment in German equities.
It is managed and advised by  wholly-owned  subsidiaries  of the  Deutsche  Bank
Group.

SHAREHOLDER INFORMATION

Prices for the Fund's shares are published  daily in the New York Stock Exchange
Composite  Transactions section of newspapers.  Net asset value and market price
information  are  published  each Monday in THE WALL STREET  JOURNAL and THE NEW
YORK TIMES, and each Saturday in BARRON'S and other newspapers in a table called
"Closed End Funds". Daily information on the Fund's net asset value is available
from NASDAQ (symbol XGERX).  It is also available by calling:  1-800-GERMANY (in
the U.S.) or 617-443-6918  (outside of the U.S.). In addition, a schedule of the
Fund's largest holdings,  dividend data and general shareholder  information may
be obtained by calling these numbers.

The   foregoing    information    is   also   available   on   our   Web   site:
www.germanyfund.com.

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

THERE ARE THREE CLOSED-END FUNDS INVESTING IN EUROPEAN EQUITIES MANAGED BY
WHOLLY-OWNED SUBSIDIARIES OF THE DEUTSCHE BANK GROUP:

o     The Germany  Fund,  Inc.--investing  primarily in equities of major German
      corporations.  It may also invest up to 20% in  equities of other  Western
      European companies (with no more than 15% in any single country).

o     The New  Germany  Fund,  Inc.--investing  primarily  in the middle  market
      German  companies and up to 20% elsewhere in Western  Europe (with no more
      than 10% in any single country).

o     The Central Europe and Russia Fund,  Inc.--investing  primarily in Central
      European and Russian companies.

Please consult your broker for advice on any of the above or call  1-800-GERMANY
(in the U.S.) or 617-443-6918 (outside of the U.S.) for shareholder reports.

These  funds  are  not  diversified  and  focus  their  investments  in  certain
geographical regions,  thereby increasing their vulnerability to developments in
that region.  Investing in foreign securities  presents certain unique risks not
associated with domestic investments,  such as currency  fluctuation,  political
and economic  changes,  and market risks. This may result in greater share price
volatility.
--------------------------------------------------------------------------------
19134

                                 [LOGO OMITTED]

                                   THE GERMANY
                                   FUND, INC.

                               SEMI-ANNUAL REPORT

                                  JUNE 30, 2005



                                 [LOGO OMITTED]

                                   THE GERMANY
                                   FUND, INC.

LETTER TO THE SHAREHOLDERS
--------------------------------------------------------------------------------
                                                                   July 22, 2005

Dear Shareholders,

      In the  first  half of the year  (2005),  global  markets  struggled  with
concerns  over  the  rising  price  of oil and its  impact  on  demand.  Markets
succumbed to the pressure in April caused by concerns of slowing economic growth
in the United  States.  Global  markets dipped lower again in June when oil rose
above $60 per barrel,  but recovered when prices moderated to $57 per barrel. In
Europe,  markets  were  impacted by political  uncertainty,  with the French and
Dutch rejecting the European Union constitution at the end of May.  Nonetheless,
European  markets  performed  relatively  well. The  announcement  of Chancellor
Schroder  calling  for early  polls in Germany  was the main  driver  behind the
German  market's strong  performance in the second quarter.  After a weak April,
the DAX index  rallied  during the rest of the period to its highest level since
July 2002,  decoupling  from the negative  impact of rising oil prices.(1)  Even
though stocks have rallied since the start of the year,  the German stock market
continues to trade at a discount to its European peers.

      For the six months  ended June 30,  2005,  the total  return  based on net
asset value of The Germany Fund  declined  5.35%,  and its total return based on
market price decreased by 3.58%.  The fund's  benchmark,  the DAX,  decreased by
4.39% in US  dollar  terms  during  the same  period.  (Past  performance  is no
guarantee of future  results.  Please see page 2, for more complete  performance
information.)

      The fund's  underperformance  relative to its  benchmark was partly due to
the fund's underweight  position in the utilities sector. This sector is seen as
a main beneficiary of a potential change in government,  as it is widely assumed
that a new  coalition  would  reverse the current  antinuclear  stance.  Another
sector that was in the spotlight during the last quarter was the banking sector.
European   cross-border   consolidation   is  finally  gaining  speed.   Italy's
second-largest bank offered to take over  HypoVereinsbank,  which is expected to
create Europe's ninth-biggest bank in terms of market  capitalization.  The fund
did not hold  HypoVereinsbank  due to its  significant  domestic  problems.  The
fund's performance was also affected by its holding in Siemens that announced an
exit solution for its mobile  business.  Though the  announcements  were seen as
positive,  uncertainties about the development of the global economy limited the
performance of the stock.  One of the strongest  contributors to performance was
Adidas  Salomon,  one of the top  performers  within  the DAX  during the second
quarter.  The share price increased after the company  announced the disposal of
Salomon.  Additionally, the last reported numbers proved to be relatively immune
to  lackluster  consumer  spending  in  Europe.   Another  consumer  stock  that
contributed  positively to the fund's performance was Porsche. The strengthening
of the US dollar, which has a positive impact on the underlying profitability of
the company, and the strong product momentum remain strong drivers for the share
price.

      The Germany Fund continued its open-market purchases of its shares, buying
183,700 shares during the first six months of 2005.* The fund's  discount to its
net asset value averaged 12.87% during this period.

      At the July 17, 2005 Board  meeting,  the Board of  Directors  approved an
expansion of The Germany Fund's investment objective and fundamental policies to
include equities of companies in all European countries using the Euro currency.
Under the new investment focus that is subject to stockholder approval, the fund
will  invest  at  least  80% of its  net  assets  in  equity  and  equity-linked
securities of companies domiciled in countries utilizing the Euro currency.  The
proposed  change  to  the  fund's  investment   objective  was  based  upon  the
determination  by the Board of  Directors,  with advice of  Deutsche  Investment
Management Americas, Inc., the fund's manager (the "Manager") and Deutsche Asset
Management  International  GmbH, the fund's investment  adviser (the "Investment
Adviser"),  that  particularly  after  the  introduction  of the Euro as  single
currency and further steps toward European integration, investment opportunities
in large  capitalization  German equities should be expanded to a geographically
broader range of large  capitalization  companies.  The Board  believes that the
economies and  securities  markets of the countries  utilizing the Euro currency
now  have  sufficient   similarities  and  linkages  to  justify  this  expanded
investment focus. Stockholder approval for the investment changes will be sought
at a special meeting to be held in the Fall. In connection with the change,  the
fund would change its benchmark to the MSCI EMU (European  Economic and Monetary
Union) Index.  Additionally,  the Board of Directors also approved a self-tender
offer by the Fund for 20% of the outstanding shares at a price of 95% of the net
asset value per share,  conditioned  on  stockholder  approval of the investment
changes.  The tender offer would  commence  within two months after  stockholder
approval.

----------
The sources,  opinions and forecasts expressed are as of July 22, 2005. There is
no guarantee that the views,  opinions and forecasts  expressed herein will come
to pass.  This  information is subject to change at any time based on market and
other  conditions  and  should  not be  construed  as a  recommendation  for any
specific security. Past performance does not guarantee future results.

1 DAX INDEX IS A TOTAL  RATE OF RETURN  INDEX OF 30  SELECTED  GERMAN  BLUE CHIP
STOCKS  TRADED  ON  THE  FRANKFURT   STOCK   EXCHANGE.   INDEX  RETURNS   ASSUME
REINVESTEDDIVIDENDS  AND,  UNLIKE  FUND  RETURNS,  DO NOT  REFLECT  ANY  FEES OR
EXPENSES. IT IS NOT POSSIBLE TO INVEST DIRECTLY INTO AN INDEX.

* THE SHARE BUY BACK  PROGRAM  WAS  SUSPENDED  FOR A PORTION  OF THE  SEMIANNUAL
PERIOD.

      Sincerely,

      /s/ Christian Strenger          /s/ Julian Sluyters

      Christian Strenger              Julian Sluyters
      Chairman                        President and Chief Executive Officer

--------------------------------------------------------------------------------
  FOR ADDITIONAL INFORMATION ABOUT THE FUND INCLUDING PERFORMANCE, DIVIDENDS,
 PRESENTATIONS, PRESS RELEASES, DAILY NAV AND SHAREHOLDER REPORTS, PLEASE VISIT
                              WWW.GERMANYFUND.COM
--------------------------------------------------------------------------------


                                       1


FUND HISTORY AS OF JUNE 30, 2005
--------------------------------------------------------------------------------

PERFORMANCE IS HISTORICAL, ASSUMES REINVESTMENT OF ALL DIVIDEND AND CAPITAL GAIN
DISTRIBUTIONS,  AND DOES NOT GUARANTEE  FUTURE RESULTS.  INVESTMENT  RETURNS AND
PRINCIPAL VALUE  FLUCTUATE WITH CHANGING  MARKET  CONDITIONS SO THAT, WHEN SOLD,
SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.  CURRENT  PERFORMANCE
MAY  BE  LOWER  OR  HIGHER  THAN  THE  PERFORMANCE  DATA  QUOTED.  PLEASE  VISIT
WWW.GERMANYFUND.COM FOR THE FUND'S MOST RECENT PERFORMANCE.

TOTAL RETURNS:



                             FOR THE SIX           FOR THE YEARS ENDED DECEMBER 31,
                             MONTHS ENDED    --------------------------------------------
                           JUNE 30, 2005(b)   2004     2003     2002      2001      2000
                           ----------------  ------   ------   ------    ------    ------
                                                                 
Net Asset Value(a) ......       (5.35)%       12.58%   59.62%  (34.43)%  (25.57)%  (20.66)%
Market Value(a) .........       (3.58)%        7.25%   68.81%  (35.76)%  (24.95)%  (21.09)%
DAX Index* ..............       (4.39)%       15.91%   65.16%  (34.14)%  (23.20)%  (14.67)%


(a)   Total return based on net asset value  reflects  changes in the Fund's net
      asset  value  during  each  period.  Total  return  based on market  value
      reflects  changes in market value.  Each figure includes  reinvestments of
      dividend and capital gain distributions, if any. These figures will differ
      depending  upon the level of any  discount  from or  premium  to net asset
      value at which the Fund's shares trade during the period.

(b)   Total returns shown for the six month period are not annualized.

----------
* DAX INDEX IS A TOTAL  RATE OF RETURN  INDEX OF 30  SELECTED  GERMAN  BLUE CHIP
STOCKS TRADED ON THE FRANKFURT STOCK EXCHANGE.  INDEX RETURNS ASSUME  REINVESTED
DIVIDENDS AND, UNLIKE FUND RETURNS,  DO NOT REFLECT ANY FEES OR EXPENSES.  IT IS
NOT POSSIBLE TO INVEST DIRECTLY INTO AN INDEX.

Investments in funds involve risk including the loss of principal.

This Fund is not diversified  and primarily  focuses its investments in Germany,
thereby increasing its vulnerability to developments in that country.  Investing
in foreign securities presents certain unique risks not associated with domestic
investments, such as currency fluctuation and political and economic changes and
market risks. This may result in greater share price volatility.

Shares of closed-end  funds  frequently  trade at a discount to net asset value.
The price of the Fund's shares is determined by a number of factors,  several of
which are beyond the control of the Fund.  Therefore,  the Fund  cannot  predict
whether its shares  will trade at,  below or above net asset  value.  Closed-end
funds, unlike open-end funds, are not continuously offered.  There is a one-time
public  offering,  and once issued,  shares of closed-end  funds are sold in the
open market through a stock exchange.

The  Fund  has  elected  to  not  be  subject  to  the  statutory   calculation,
notification  and  publication  requirements  of the German  Investment  Tax Act
(Investmentsteuergesetz).  As a  result  German  investors  in the  Fund  may be
subject to less favorable lump-sum taxation under German law.


                                       2


FUND HISTORY AS OF JUNE 30, 2005 (CONTINUED)
--------------------------------------------------------------------------------

STATISTICS:

Net Assets ....................................................   $ 130,932,300
Shares Outstanding ............................................      14,789,992
NAV Per Share .................................................   $        8.85

DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS:

 RECORD        PAYABLE                   ORDINARY   LT CAPITAL
  DATE          DATE                      INCOME      GAINS           TOTAL
--------       -------                   --------   ----------    -------------
12/22/04       12/31/04 ............     $  0.025   $       --    $       0.025
05/06/04       05/14/04 ............     $  0.039   $       --    $       0.039
11/19/02       11/29/02 ............     $   0.01   $       --    $        0.01
11/19/01       11/29/01 ............     $   0.06   $       --    $        0.06
09/03/01       09/17/01 ............           --   $     0.02    $        0.02
11/20/00       11/29/00 ............           --   $     2.18    $        2.18
09/01/00       09/15/00 ............     $   0.19   $     0.12    $        0.31

OTHER INFORMATION:

NYSE Ticker Symbol ............................................             GER
NASDAQ Symbol .................................................           XGERX
Dividend Reinvestment Plan ....................................             Yes
Voluntary Cash Purchase Program ...............................             Yes
Annualized Expense Ratio (6/30/05)* ...........................            1.57%

----------
*  Represents  expense  ratio  before  custody  credits.  Please see  "Financial
Highlights" section of this report.


                                        3


PORTFOLIO BY MARKET SECTOR AS OF JUNE 30, 2005 (AS A % OF PORTFOLIO'S MARKET
VALUE*)
--------------------------------------------------------------------------------

[GRAPHIC OMITTED]

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:

Financials                                    17.4%
Health Care                                    3.3%
Industrials                                   23.8%
Information Technology                         8.9%
Telecommunication Services                     2.8%
Utilities                                     10.2%
Materials                                     13.0%
Consumer Discretionary                        16.8%
Consumer Staples                               2.9%
Energy                                         0.9%

10 LARGEST EQUITY HOLDINGS AS OF JUNE 30, 2005 (AS A % OF PORTFOLIO'S MARKET
VALUE*)
--------------------------------------------------------------------------------
 1.   Siemens                                 14.0
 2.   SAP                                      8.0
 3.   BASF                                     7.4
 4.   E.ON                                     6.1
 5.   Bayer                                    5.6
 6.   Deutsche Post                            4.7
 7.   Allianz                                  4.4
 8.   Munchener Ruckversicherungs              4.3
 9.   DaimlerChrysler                          4.1
10.   Adidas Salomon                           3.9

*  Percentage  (%) of market value refers to all  securities  in the  portfolio,
except cash and equivalents.

Portfolio by Market Sector and 10 Largest Equity Holdings are subject to change.

Following the Fund's fiscal first and third  quarter-end,  a complete  portfolio
holdings  listing is filed with the SEC on Form N-Q.  The form will be available
on the SEC's Web site at www.sec.gov,  and it also may be reviewed and copied at
the SEC's Public Reference Room in Washington, D.C. Information on the operation
of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.


                                       4


INTERVIEW WITH THE CHIEF INVESTMENT OFFICER
--------------------------------------------------------------------------------

      QUESTION:  THIS PAST  SPRING,  FRANCE AND THE  NETHERLANDS  REJECTED A NEW
CONSTITUTION FOR THE EUROPEAN UNION. WHAT ARE THE LONG-TERM IMPLICATIONS FOR THE
FUTURE OF THE EU? IS THIS A SIGN THAT MONETARY UNION IS NOT WORKING?

      ANSWER:  While the "no" vote is a setback for the EU, it does not have any
immediate  implications for the German market. Member countries remain committed
to monetary union,  and the EU will continue to be governed by the  constitution
that was in place  before  the vote  this  spring.  Perhaps  the most  important
consequence of the  constitutional  defeat is that  enlargement of the 25-member
union is likely to pause  until the  current  members  get their house in order.
This may be  marginally  positive for Germany as a net payer to the EU. In terms
of monetary  union,  the  failure of recent EU  budgetary  negotiations  has put
pressure  on the euro and could  result in delays to  planned  expansion  of the
Eurozone.

      QUESTION:  GERMAN  ELECTIONS THAT WERE SCHEDULED FOR 2006 HAVE BEEN CALLED
EARLY FOR SEPTEMBER THIS YEAR. WHAT ARE THE IMPLICATIONS FOR THE GERMAN MARKET?

      ANSWER:  At the  beginning of July,  Chancellor  Schroeder  requested  and
received a vote of no confidence from the Bundestag  (lower house) to call early
elections.  In mid-September  they are expected to bring increased  momentum for
reforms.  Schroeder  has had  difficulty  implementing  some of the Agenda  2010
reforms due to lack of support within his coalition. Depending on the outcome of
the elections,  a broad CDU/FDP coalition (CDU:  Christich-Demokratische  Union;
FDP:  Frele  Demokratische  Partei)  with  majority  control  in both  houses of
parliament could be established, giving the government power to forge ahead with
labor market,  tax, and health care reforms.  In terms of the stock market,  the
DAX  has  historically  performed  well in  election  years,  outperforming  its
European  peers by more than 20%.(1) Given that many of the reforms would have a
favorable impact on German  companies,  it is expected that the DAX would follow
this  historical  trend. Of course,  past  performance is no guarantee of future
results.

      QUESTION:  GERMAN  SHARES  HAVE  PERFORMED  WELL  DESPITE  AN  UNFAVORABLE
DOMESTIC ENVIRONMENT. ASIDE FROM THEIR FOCUS ON EXPORT MARKETS, WHAT HAVE GERMAN
COMPANIES  BEEN DOING TO  ACHIEVE  SUCH  STRONG  PERFORMANCE  RELATIVE  TO THEIR
EUROPEAN PEERS?

      ANSWER:  Developing a global market for their products has been one of the
most  effective  strategies  for German  companies  to remain  profitable  in an
environment of weak domestic consumption.  However,  German businesses recognize
the importance of remaining  competitive on the production  side as well. One of
the most significant costs for German companies is labor. Because the government
was slow to implement labor reforms,  several German companies took matters into
their  own  hands  and  successfully  bargained  with  labor  unions,   securing
agreements for employees to work longer hours at the same pay.  Other  companies
built production  facilities overseas to take advantage of lower labor costs and
tax rates,  a strategy that worked well with the  development  of global markets
for their products.  Now that the outgoing government's reform program looks set
for better speed,  German companies operating primarily in Germany are likely to
be the main beneficiaries.

----------
(1) DAX INDEX IS A TOTAL RATE OF RETURN  INDEX OF 30  SELECTED  GERMAN BLUE CHIP
STOCKS TRADED ON THE FRANKFURT STOCK EXCHANGE.  INDEX RETURNS ASSUME  REINVESTED
DIVIDENDS AND, UNLIKE FUND RETURNS,  DO NOT REFLECT ANY FEES OR EXPENSES.  IT IS
NOT POSSIBLE TO INVEST DIRECTLY INTO AN INDEX.

Sandra M. Schaufler, Chief Investment Officer of the Germany Fund, Inc.


                                       5


REPORT FROM THE INVESTMENT ADVISER AND MANAGER
--------------------------------------------------------------------------------

ECONOMIC OUTLOOK

The  first  half of the year  (2005)  brought  a series  of ups and downs on the
economic front. Business confidence,  as measured by the ZEW index, and consumer
confidence,  as  measured  by the IFO  index,  both  fell in May (the IFO  index
reached a 20-month low) before  rebounding  in June.  Meanwhile  gross  domestic
product (GDP) grew by 1%  quarter-over-quarter in the first quarter of 2005, the
fastest rate since 2001. In the face of weak domestic  demand,  growth continues
to be driven by net exports.  This trend should  continue,  as the euro weakened
steadily throughout the second quarter,  making German products more competitive
overseas.  Unemployment peaked at 12% during the first quarter and remained well
above 11%  throughout  the half.  As expected,  the  European  Central Bank kept
interest rates unchanged at 2%.

For the second half of the year, the early  elections in Germany can be expected
to affect the economic  environment,  as uncertainty  surrounding  the future of
government  reforms will likely stifle domestic demand. A potential  increase in
the VAT rate could  hinder  private  consumption,  which  would limit GDP growth
through the end of the year.  Once a new  government  is in place and the reform
program is announced,  demand could pick up again as consumers regain confidence
about  the  future.  Overall,  we  expect  modest  GDP  growth  of 1.0% in 2005.
Investment  may also be constrained  until German  companies gain clarity on the
direction of future reforms,  but inflation should remain low and is forecast to
be 1.6% in  2005.  From a  fiscal  perspective,  the  new  government's  biggest
challenge  will be financing the reforms,  as the budget  deficit is expected to
decrease only slightly from last year,  from 3.7% of GDP to 3.6%.  However,  the
prospects  for  German  growth  should  improve  significantly  in  2006  as the
structural reforms that have been set in motion begin to gain traction.

SPECIAL CONSIDERATIONS

The observations in this letter reflect our own opinions as of July 22, 2005 and
are based on our own analysis,  and others may have different  opinions.  Events
may not transpire as we or they currently  expect.  Also,  while economic events
can influence  broad market  trends,  political,  monetary and other factors are
also relevant to stock performance. In any event, investment results will depend
on our success in identifying  individual  stocks,  which are influenced by many
factors beyond general economic matters. We cannot predict investment results or
whether they will be successful.


                                        6


THE GERMANY FUND, INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------

   SHARES                       DESCRIPTION                           VALUE
----------                      -----------                       -------------
INVESTMENTS IN GERMAN SECURITIES -- 89.6%
            COMMON STOCKS -- 84.8%
             AIR FREIGHT & LOGISTICS -- 4.6%
   260,000   Deutsche Post ....................................       6,071,040
                                                                  -------------
             AUTO COMPONENTS -- 2.7%
    50,000   Continental ......................................       3,601,024
                                                                  -------------
             AUTOMOBILES -- 5.1%
    30,000   Bayerische Motoren Werke .........................       1,368,014
   130,000   DaimlerChrysler ..................................       5,276,022
                                                                  -------------
                                                                      6,644,036
                                                                  -------------
             CHEMICALS -- 13.0%
   145,000   BASF .............................................       9,638,585
   220,000   Bayer ............................................       7,335,960
                                                                  -------------
                                                                     16,974,545
                                                                  -------------
             CONSTRUCTION & ENGINEERING -- 1.1%
    30,000   Bilfinger Berger .................................       1,397,021
                                                                  -------------
             DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.9%
   135,000   Deutsche Telekom .................................       2,496,363
                                                                  -------------
             ELECTRIC UTILITIES -- 6.0%
    88,700   E.ON .............................................       7,898,704
                                                                  -------------
             FOOD & STAPLES RETAILING -- 2.8%
    75,000   Metro ............................................       3,717,351
                                                                  -------------
             INDUSTRIAL CONGLOMERATES -- 13.9%
   250,000   Siemens ..........................................      18,231,731
                                                                  -------------
             INSURANCE -- 9.6%
    50,000   Allianz ..........................................       5,739,037
    30,000   Hannover Ruckversicherungs .......................       1,133,063
    53,000   Munchener Ruckversicherungs ......................       5,644,597
                                                                  -------------
                                                                     12,516,697
                                                                  -------------
             INTERNET SOFTWARE & SERVICES -- 0.9%
    40,000   United Internet ..................................       1,140,918
                                                                  -------------

   SHARES                       DESCRIPTION                           VALUE
----------                      -----------                       -------------
             MACHINERY -- 4.0%
    90,000   MAN ..............................................       3,734,211
    30,000   Rheinmetall+ .....................................       1,509,058
                                                                  -------------
                                                                      5,243,269
                                                                  -------------
             MEDIA -- 1.1%
    40,000   Premiere* ........................................       1,382,639
                                                                  -------------
             MULTI-UTILITIES -- 3.0%
    60,000   RWE ..............................................       3,870,904
                                                                  -------------
             PHARMACEUTICALS -- 2.3%
    40,000   Altana ...........................................       2,288,122
    10,000   Merck KGaA .......................................         796,104
                                                                  -------------
                                                                      3,084,226
                                                                  -------------
             REAL ESTATE -- 1.0%
    35,000   Hypo Real Estate Holding .........................       1,332,058
                                                                  -------------
             SOFTWARE -- 8.0%
    60,000   SAP ..............................................      10,443,029
                                                                  -------------
             TEXTILES, APPAREL & LUXURY GOODS -- 3.8%
    30,000   Adidas Salomon ...................................       5,022,097
                                                                  -------------
             Total Common Stocks
             (cost $86,374,761) ...............................     111,067,652
                                                                  -------------
            PREFERRED STOCKS -- 4.8%
             AUTOMOBILES -- 2.9%
    20,000   Bayerische Motoren Werke+ ........................         743,289
     4,000   Porsche ..........................................       3,005,256
                                                                  -------------
                                                                      3,748,545
                                                                  -------------
             HEALTHCARE PROVIDERS & SERVICES -- 0.9%
    10,000   Fresenius+ .......................................       1,145,147
                                                                  -------------
             TEXTILES, APPAREL & LUXURY GOODS -- 1.0%
    40,000   Hugo Boss ........................................       1,313,509
                                                                  -------------
              Total Preferred Stocks
              (cost $5,476,486) ...............................       6,207,201
                                                                  -------------
              Total Investments in German Securities
              (cost $91,851,247) ..............................     117,274,853
                                                                  -------------

    The accompanying notes are an integral part of the financial statements.


                                        7


THE GERMANY FUND, INC.
SCHEDULE OF INVESTMENTS -- JUNE 30, 2005 (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------

   SHARES                       DESCRIPTION                           VALUE
----------                      -----------                       -------------
INVESTMENTS IN DUTCH COMMON STOCK -- 1.1%
             DIVERSIFIED FINANCIAL SERVICES -- 1.1%
    50,000   ING Groep
              (cost $1,155,163) ...............................       1,412,249
                                                                  -------------
INVESTMENTS IN FRENCH COMMON STOCKS -- 4.0%
             INSURANCE -- 1.9%
   100,000   Axa ..............................................       2,498,176
                                                                  -------------
             MULTI-UTILITIES -- 1.2%
    55,000   Suez .............................................       1,490,989
                                                                  -------------
             OIL, GAS & CONSUMABLE FUELS -- 0.9%
     5,000   Total ............................................       1,174,155
                                                                  -------------
              Total Investments in French Common Stocks
              (cost $4,825,196) ...............................       5,163,320
                                                                  -------------
INVESTMENTS IN SWISS COMMON STOCK -- 2.1%
             DIVERSIFIED FINANCIAL SERVICES -- 2.1%
    36,000   United Bank of Switzerland
              (cost $2,780,973) ...............................       2,805,268
                                                                  -------------

   SHARES                       DESCRIPTION                           VALUE
----------                      -----------                       -------------
INVESTMENTS IN SPANISH COMMON STOCKS -- 2.6%
             COMMERCIAL BANKS -- 1.7%
   146,800   Banco Bilbao Vizcaya Argentaria ..................       2,263,911
                                                                  -------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.9%
    72,800   Telefonica .......................................       1,191,331
                                                                  -------------
              Total Investments in Spanish
              Common Stocks
              (cost $3,588,987) ...............................       3,455,242
                                                                  -------------
SECURITIES LENDING COLLATERAL -- 2.0%
 2,643,390   Scudder Daily Assets Fund Institutional, 3.19%++
              (cost $2,643,390) ...............................       2,643,390
                                                                  -------------
              Total Investments--101.4%
               (cost $106,844,956) ............................   $ 132,754,322
              Liabilities in excess of cash and
               other assets--(1.4)% ...........................      (1,822,022)
                                                                  -------------
             NET ASSETS--100.0% ...............................   $ 130,932,300
                                                                  =============

----------
*     Non-income producing security.

+     All or a portion of these securities were on loan (see Notes to Financial
      Statements). The value of all securities loaned at June 30, 2005 amounted
      to $2,515,991, which is 1.9% of the net assets.

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

    The accompanying notes are an integral part of the financial statements.


                                        8


THE GERMANY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------



ASSETS
                                                                                                       
Investments, at value (cost $104,201,566) - including $2,515,991 of securities loaned ..............      $     130,110,932
Investment in Scudder Daily Assets Fund Institutional (cost $2,643,390)* ...........................              2,643,390
Cash and foreign currency (cost $1,005,332) ........................................................              1,006,330
Foreign withholding tax refund receivable ..........................................................                 50,490
Interest receivable ................................................................................                    249
Other assets .......................................................................................                 11,200
                                                                                                          -----------------
    Total assets ...................................................................................            133,822,591
                                                                                                          =================
LIABILITIES
Payable upon return of securities loaned ...........................................................              2,643,390
Management fee payable .............................................................................                 65,390
Investment advisory fee payable ....................................................................                 35,541
Accrued expenses ...................................................................................                145,970
                                                                                                          -----------------
    Total liabilities ..............................................................................              2,890,291
                                                                                                          -----------------
NET ASSETS .........................................................................................      $     130,932,300
                                                                                                          =================
Net assets consist of:
Paid-in capital, $.001 par (Authorized 80,000,000 shares) ..........................................      $     162,120,636
Cost of 2,059,284 shares held in treasury ..........................................................            (13,407,399)
Undistributed net investment income ................................................................              1,731,494
Accumulated net realized loss on investments and foreign currency transactions .....................            (45,427,922)
Net unrealized appreciation of investments and foreign currency transactions .......................             25,915,491
                                                                                                          -----------------
Net assets .........................................................................................      $     130,932,300
                                                                                                          =================
Net asset value per share ($130,932,300 / 14,789,992 shares of common stock issued and outstanding)       $            8.85
                                                                                                          =================


----------
* Represents collateral on securities loaned.

    The accompanying notes are an integral part of the financial statements.


                                        9


THE GERMANY FUND, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------



                                                                                                               FOR THE
                                                                                                          SIX MONTHS ENDED
                                                                                                            JUNE 30, 2005
                                                                                                          -----------------
                                                                                                       
NET INVESTMENT INCOME
Investment income
   Dividends (net of foreign withholding taxes of $464,453) ........................................      $       2,796,054
   Interest ........................................................................................                  2,864
   Securities lending income, including income from Scudder Daily Assets Fund Institutional,
      net of borrower rebates ......................................................................                227,665
                                                                                                          -----------------
Total investment income ............................................................................              3,026,583
                                                                                                          -----------------
Expenses
   Management fee ..................................................................................                392,340
   Investment advisory fee .........................................................................                216,674
   Custodian and Transfer Agent's fees and expenses ................................................                 85,845
   Reports to shareholders .........................................................................                 83,754
   Directors' fees and expenses ....................................................................                 45,138
   Legal fee .......................................................................................                169,283
   Audit fee .......................................................................................                 31,588
   NYSE listing fee ................................................................................                 10,266
   Miscellaneous ...................................................................................                  8,097
                                                                                                          -----------------
   Total expenses before custody credits* ..........................................................              1,042,985
   Less: custody credits ...........................................................................                 (3,201)
                                                                                                          -----------------
   Net expenses ....................................................................................              1,039,784
                                                                                                          -----------------
Net investment income ..............................................................................              1,986,799
                                                                                                          -----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
   Investments .....................................................................................              6,661,506
   Foreign currency transactions ...................................................................                 50,973
Net unrealized depreciation during the period on:
   Investments .....................................................................................            (16,334,307)
   Translation of other assets and liabilities from foreign currency ...............................                (14,296)
                                                                                                          -----------------
Net loss on investments and foreign currency transactions ..........................................             (9,636,124)
                                                                                                          -----------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ...............................................      $      (7,649,325)
                                                                                                          =================


----------
* The custody credits are attributable to interest earned on U.S. cash balances
held on deposit at custodian.

    The accompanying notes are an integral part of the financial statements.


                                       10


THE GERMANY FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------



                                                                                            FOR THE
                                                                                          SIX MONTHS
                                                                                             ENDED             FOR THE
                                                                                         JUNE 30, 2005       YEAR ENDED
                                                                                          (UNAUDITED)     DECEMBER 31, 2004
                                                                                         -------------    -----------------
                                                                                                    
INCREASE (DECREASE) IN NET ASSETS
Operations
   Net investment income (loss) ....................................................     $   1,986,799    $        (165,363)
      Net realized gain on:
      Investments ..................................................................         6,661,506            7,701,730
      Foreign currency transactions ................................................            50,973              129,415
   Net unrealized appreciation (depreciation) during the period on:
      Investments ..................................................................       (16,334,307)           7,407,738
      Translation of other assets and liabilities from foreign currency ............           (14,296)             (52,151)
                                                                                         -------------    -----------------
   Net increase (decrease) in net assets resulting from operations .................        (7,649,325)          15,021,369
                                                                                         -------------    -----------------
Distributions to shareholders from:
   Net investment income(a) ........................................................                --             (966,156)
                                                                                         -------------    -----------------
Capital share transactions:
   Net proceeds from reinvestment of dividends (0 and 52,561 shares, respectively) .                --              341,119
   Cost of shares repurchased (183,700 and 652,150 shares, respectively) ...........        (1,455,397)          (4,801,379)
                                                                                         -------------    -----------------
   Net increase (decrease) in net assets from capital share transactions ...........        (1,455,397)          (4,460,260)
                                                                                         -------------    -----------------
Total increase (decrease) in net assets ............................................        (9,104,722)           9,594,953

NET ASSETS
Beginning of period ................................................................       140,037,022          130,442,069
                                                                                         -------------    -----------------
End of period (including undistributed net investment income of $1,731,494 and
   accumulated distributions in excess of net investment income of
   $255,305 as of June 30, 2005 and December 31, 2004, respectively) ...............     $ 130,932,300    $     140,037,022
                                                                                         =============    =================


----------
(a) For  U.S.  tax  purposes,  total  distributions  to  shareholders  consisted
entirely of ordinary income.

    The accompanying notes are an integral part of the financial statements.


                                       11


THE GERMANY FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1. ACCOUNTING POLICIES

The Germany  Fund,  Inc. (the "Fund") was  incorporated  in Delaware on April 8,
1986 as a diversified,  closed-end  management  investment  company.  Investment
operations  commenced on July 23, 1986. The Fund  reincorporated  in Maryland on
August 29, 1990 and on October 16, 1996 the Fund changed from a diversified to a
non-diversified company.

The following is a summary of significant  accounting  policies  followed by the
Fund  in the  preparation  of  its  financial  statements.  The  preparation  of
financial statements in accordance with accounting principles generally accepted
in the United  States of  America  requires  management  to make  estimates  and
assumptions  that affect the reported  amounts and  disclosures in the financial
statements. Actual results could differ from those estimates.

SECURITY  VALUATION:  Investments are stated at value.  All securities for which
market  quotations  are readily  available are valued at the last sales price on
the primary exchange on which they are traded prior to the time of valuation. If
no sales  price is  available  at that  time,  and both bid and ask  prices  are
available,  the  securities  are valued at the mean between the last current bid
and ask prices; if no quoted asked prices are available,  they are valued at the
last  quoted bid price.  All  securities  for which  market  quotations  are not
readily  available  will be valued as  determined  in good faith by the Board of
Directors  of the Fund.  The Fund  calculates  its net asset  value per share at
11:30 A.M.,  New York time,  in order to minimize  the  possibility  that events
occurring  after  the close of the  securities  exchanges  on which  the  Fund's
portfolio  securities  principally trade would require adjustment to the closing
market prices in order to reflect fair value.

SECURITIES  TRANSACTIONS  AND INVESTMENT  INCOME:  Securities  transactions  are
recorded on the trade date.  Cost of  securities  sold is  calculated  using the
identified cost method.  Dividend income is recorded on the ex-dividend date and
interest  income is  recorded  on an  accrual  basis.  Such  dividend  income is
recorded net of unrecoverable foreign withholding tax.

SECURITIES LENDING: The Fund may lend securities to financial institutions.  The
Fund retains beneficial  ownership of the securities it has loaned and continues
to receive  interest and dividends  paid by the securities and to participate in
any changes in their  market  value.  The Fund  requires  the  borrowers  of the
securities  to  maintain   collateral   with  the  Fund  consisting  of  liquid,
unencumbered assets having a value at least equal to the value of the securities
loaned.  The Fund may invest the cash collateral into a joint trading account in
an affiliated  money market fund pursuant to Exemptive Orders issued by the SEC.
The Fund receives  compensation for lending its securities either in the form of
fees or by earning  interest on invested cash  collateral  net of fees paid to a
lending agent.  Either the Fund or the borrower may terminate the loan. The Fund
is  subject  to all  investment  risks  associated  with  the  value of any cash
collateral  received,  including,  but not limited to, interest rate, credit and
liquidity risk associated with such investments.

FOREIGN CURRENCY  TRANSLATION:  The books and records of the Fund are maintained
in United States dollars.

Assets and liabilities  denominated in euros and other foreign  currency amounts
are  translated  into United States  dollars at the 10:00 A.M.  mid-point of the
buying and selling  spot rates  quoted by the Federal  Reserve Bank of New York.
Purchases and sales of investment  securities,  income and expenses are reported
at the rate of exchange  prevailing on the respective  settlement  dates of such
transactions.  The  resultant  gains  and  losses  arising  from  exchange  rate
fluctuations  are identified  separately in the Statement of Operations,  except
for such amounts  attributable to investments which are included in net realized
and unrealized gains and losses on investments.

Foreign  investments may involve certain  considerations and risks not typically
associated  with those of  domestic  origin as a result of,  among  others,  the
possibility of political and economic developments and the level of governmental
supervision and regulation of foreign securities markets.  In addition,  certain
foreign markets may be substantially  smaller,  less developed,  less liquid and
more volatile than the major markets of the United States.

CONTINGENCIES:  In the  normal  course  of  business,  the Fund may  enter  into
contracts with service providers that contain general  indemnification  clauses.
The Fund's maximum  exposure under these  arrangements  is unknown as this would
involve  future  claims that may be made against the Fund that have not yet been
made.  However,  based on  experience,  the Fund  expects the risk of loss to be
remote.

TAXES:  No provision has been made for United States  Federal income tax because
the Fund intends to meet the  requirements of the United States Internal Revenue
Code applicable to regulated  investment  companies and to distribute all of its
taxable income to shareholders.

DIVIDENDS AND  DISTRIBUTIONS  TO  SHAREHOLDERS:  The Fund records  dividends and
distributions  to its shareholders on the ex-dividend  date.  Income and capital
gain  distributions  are  determined  in accordance  with United States  Federal
income tax  regulations  which may differ from accounting  principles  generally
accepted in the United  States of  America.  These  differences,  which could be
temporary   or  permanent  in  nature,   may  result  in   reclassification   of
distributions; however, net investment income, net realized gains and net assets
are not affected.


                                       12


THE GERMANY FUND, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2005   (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------

NOTE 2. MANAGEMENT AND INVESTMENT ADVISORY AGREEMENTS

The Fund had a Management  Agreement  with  Deutsche Bank  Securities  Inc. (the
"Manager").  At its July 12, 2004 Board meeting, the Board approved transferring
the Fund's  Management  Agreement  with  Deutsche  Bank  Securities  Inc.  to an
affiliated company,  Deutsche Investment  Management Americas Inc. The transfer,
which became effective  September 1, 2004, did not involve any change in control
or actual management of the investment manager, which provides the same scope of
services, utilizes the same people for work on Fund matters and charges the same
fees under the  agreement.  The Fund has an Investment  Advisory  Agreement with
Deutsche Asset Management  International  GmbH (the "Investment  Adviser").  The
Manager and the Investment Adviser are affiliated companies.

The Management  Agreement  provides the Manager with a fee,  computed weekly and
payable  monthly,  at the annual rates of .65% of the Fund's  average weekly net
assets up to $50 million,  and .55% of such assets in excess of $50 million. The
Investment  Advisory  Agreement  provides  the  Investment  Adviser  with a fee,
computed weekly and payable  monthly,  at the annual rates of .35% of the Fund's
average  weekly net assets up to $100  million and .25% of such assets in excess
of $100 million.  Accordingly,  for the period ended June 30, 2005, the combined
fee pursuant to the Management and Investment Advisory Agreements was equivalent
to an annualized effective rate of .91% of the Fund's average net assets.

Pursuant to the Management  Agreement,  the Manager is the corporate manager and
administrator  of the Fund  and,  subject  to the  supervision  of the  Board of
Directors and pursuant to recommendations made by the Fund's Investment Adviser,
determines the suitable  securities for investment by the Fund. The Manager also
provides office facilities and certain administrative,  clerical and bookkeeping
services  for the Fund.  Pursuant  to the  Investment  Advisory  Agreement,  the
Investment Adviser, in accordance with the Fund's stated investment  objectives,
policies and restrictions,  makes recommendations to the Manager with respect to
the  Fund's  investments  and,  upon  instructions  given by the  Manager  as to
suitable  securities  for  investment by the Fund,  transmits  purchase and sale
orders,  and selects  brokers and dealers to execute  portfolio  transactions on
behalf of the Fund.

NOTE 3. TRANSACTIONS WITH AFFILIATES

For the period ended June 30, 2005,  Deutsche  Bank AG, the German parent of the
Manager and Investment Adviser, and its affiliates received $25,512 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Fund,  that the Board  determined  were  effected in compliance
with the Fund's Rule 17e-1 procedures.

Certain officers of the Fund are also officers of either the Manager or Deutsche
Bank AG.

The Fund pays each Director not affiliated  with the Manager  retainer fees plus
specified amounts for attended board and committee meetings.

NOTE 4. PORTFOLIO SECURITIES

Purchases and sales of investment securities, other than short-term investments,
for  the  period  ended  June  30,  2005  were   $41,085,770  and   $40,509,823,
respectively.

The cost of  investments  at June 30, 2005 was  $106,978,278  for United  States
Federal  income tax purposes.  Accordingly,  as of June 30 2005,  net unrealized
appreciation  of investments  aggregated  $25,776,044 of which  $26,520,112  and
$744,068 related to unrealized appreciation and depreciation, respectively.

For United States Federal income tax purposes, the Fund had a capital loss carry
forward at December 31, 2004 of approximately $45,332,000,  of which $13,630,000
and  $31,702,000  will expire in 2009 and 2010,  respectively.  No capital gains
distribution is expected to be paid to shareholders  until future net gains have
been  realized in excess of such carry  forward.  In addition,  from November 1,
2004 to December  31,  2004,  the Fund  incurred  approximately  $220,000 of net
realized capital losses.  As permitted by tax  regulations,  the Fund intends to
elect to defer  these  losses and treat them as arising in the fiscal year ended
December 31, 2005.

NOTE 5. PORTFOLIO SECURITIES LOANED

On June 30, 2005, the market value of the  securities  loaned and its collateral
were  $2,515,991  and  $2,643,390,  respectively.  For the period ended June 30,
2005,  the Fund earned  $227,665 as  securities  lending  fees,  net of borrower
rebates and agency fees.

NOTE 6. CAPITAL

During the period ended June 30, 2005 and the year ended  December 31, 2004, the
Fund  purchased  183,700 and  652,150 of its shares of common  stock on the open
market at a total cost of $1,455,397 and $4,801,379,  respectively. The weighted
average  discount of these purchased shares comparing the purchased price to the
net asset value at the time of purchase was 12.4% and 11.3% respectively.  These
shares are held in treasury.


                                       13


THE GERMANY FUND, INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

Selected  data for a share of common stock  outstanding  throughout  each of the
periods indicated:



                                                   FOR THE SIX
                                                  MONTHS ENDED                     FOR THE YEARS ENDED DECEMBER 31,
                                                  JUNE 30, 2005     --------------------------------------------------------------
                                                   (UNAUDITED)         2004          2003       2002          2001         2000
                                                   -----------      ---------     ---------   ---------    ---------    ----------
                                                                                                      
Per share operating performance:
Net asset value:
Beginning of period ............................   $      9.35      $    8.38     $    5.25   $    8.02    $   10.89    $    16.93
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Net investment income (loss) ...................           .13(a)        (.01)(a)       .02        --            .05          (.02)
Net realized and unrealized gain (loss) on
   investments and foreign currency transactions          (.64)          1.00          3.09       (2.78)       (2.84)        (3.48)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Increase (decrease) from investment operations .          (.51)           .99          3.11       (2.78)       (2.79)        (3.50)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Increase resulting from share repurchases ......           .01            .04           .02         .02          .01           .05
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Distributions from net investment income .......            --           (.06)           --          --         (.05)           --
Distributions from net realized
   foreign currency gains ......................            --             --            --        (.01)        (.01)           --
Distributions from net realized
   short-term capital gains ....................            --             --            --          --           --          (.19)
Distributions from net realized
   long-term capital gains .....................            --             --            --          --         (.02)        (2.30)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Total distributions+ ...........................            --           (.06)           --        (.01)        (.08)        (2.49)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Dilution in net asset value from
   dividend reinvestment .......................            --            .00(b)         --          --         (.01)         (.10)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
Net asset value:
   End of period ...............................   $      8.85      $    9.35     $    8.38   $    5.25    $    8.02    $    10.89
                                                   ===========      =========     =========   =========    =========    ==========
Market value:
   End of period ...............................   $      7.82      $    8.11     $    7.63   $    4.52    $    7.05    $     9.50

Total investment return for the period:++
Based upon market value ........................         (3.58)%***      7.25%        68.81%     (35.76)%     (24.95)%      (21.09)%
Based upon net asset value .....................         (5.35)%***     12.58%        59.62%     (34.43)%     (25.57)%      (20.66)%

Ratio to average net assets:
Total expenses before custody credits* .........          1.57%**        1.58%         1.77%       1.63%        1.47%         1.29%
Net investment income (loss) ...................          1.48%****      (.13)%         .29%        .03%         .53%         (.17)%
Portfolio turnover .............................         60.80%**      204.88%       286.91%     111.67%      121.37%       137.70%
Net assets at end of period (000's omitted) ....   $   130,932      $ 140,037     $ 130,442   $  84,809    $ 133,793    $  183,541
----------
  (a) BASED ON AVERAGE SHARES OUTSTANDING DURING
      THE PERIOD.
  (b) AMOUNT IS LESS THAN $.005 PER SHARE.
    + FOR U.S. TAX PURPOSES, TOTAL DISTRIBUTIONS
      CONSISTED OF:

        Ordinary income                                     --      $    (.06)           --   $    (.01)   $    (.06)   $     (.19)
        Long term capital gains                             --             --            --          --         (.02)        (2.30)
                                                   -----------      ---------     ---------   ---------    ---------    ----------
                                                            --      $    (.06)           --   $    (.01)   $    (.08)   $    (2.49)
                                                   -----------      ---------     ---------   ---------    ---------    ----------


  ++  TOTAL RETURN BASED ON NET ASSET VALUE  REFLECTS  CHANGES IN THE FUND'S NET
      ASSET  VALUE  DURING  EACH  PERIOD.  TOTAL  RETURN  BASED ON MARKET  VALUE
      REFLECTS  CHANGES IN MARKET VALUE.  EACH FIGURE INCLUDES  REINVESTMENTS OF
      DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS, IF ANY. THESE FIGURES WILL DIFFER
      DEPENDING  UPON THE LEVEL OF ANY  DISCOUNT  FROM OR  PREMIUM  TO NET ASSET
      VALUE AT WHICH THE FUND'S SHARES TRADE DURING THE PERIOD.

   *  THE CUSTODY  CREDITS ARE  ATTRIBUTABLE  TO  INTEREST  EARNED ON U.S.  CASH
      BALANCES. THE RATIO OF TOTAL EXPENSES AFTER CUSTODY CREDITS TO AVERAGE NET
      ASSETS ARE 1.56%,  1.57%,  1.77%,  1.63%,  1.46% AND 1.27% FOR 2005, 2004,
      2003, 2002, 2001 AND 2000, RESPECTIVELY.

  **  ANNUALIZED.

 ***  NOT ANNUALIZED.

****  NOT ANNUALIZED.  THE RATIO FOR SIX MONTHS ENDED JUNE 30, 2005 HAS NOT BEEN
      ANNUALIZED SINCE THE FUND BELIEVES IT WOULD NOT BE APPROPRIATE BECAUSE THE
      FUND'S DIVIDEND INCOME IS NOT EARNED RATABLY THROUGHOUT THE FISCAL YEAR.


                                       14


THE GERMANY FUND, INC.
REPORT OF STOCKHOLDERS' MEETING (UNAUDITED)
--------------------------------------------------------------------------------

The Annual Meeting of  Stockholders  of The Germany Fund,  Inc. was held on June
21,  2005.  At the  Meeting,  the  following  matters  were  voted  upon  by the
stockholders (the resulting votes are presented below):

1.    To elect  three  Directors  to serve for a term of three years until their
      successors are elected and qualify.

                                                 NUMBER OF VOTES
                                                -----------------
                                        FOR                          WITHHELD
                                     ----------                      --------
Fred H. Langhammer                   11,108,829                       369,712
Christian H. Strenger                11,171,903                       306,638
Werner Walbrol                       11,182,445                       296,096

2.    To  ratify  the  appointment  by the  Audit  Committee  and the  Board  of
      Directors of  PricewaterhouseCoopers  LLP as independent registered public
      accounting firm for the fiscal year ending December 31, 2005.

                                             NUMBER OF VOTES
                                            -----------------
                             FOR                 AGAINST               ABSTAIN
                        ---------------        -----------           -----------
                          11,257,805             156,985               63,752

PROXY VOTING
--------------------------------------------------------------------------------

A  description  of the Fund's  policies and  procedures  for voting  proxies for
portfolio  securities and information  about how the Fund voted proxies relating
to its  portfolio  securities  during  the 12  month  period  ended  June  30 is
available on our web site --  www.germanyfund.com -- (click on the "proxy voting
record" link in the left hand tool bar) or on the SEC's web site at www.sec.gov.
To obtain a written copy of the Fund's  policies and procedures  without charge,
upon request, call us toll free at 1-800-437-6269.


                                       15


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  EXECUTIVE OFFICES
  345 PARK AVENUE, NEW YORK, NY 10154

  MANAGER
  DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.

  INVESTMENT ADVISER
  DEUTSCHE ASSET MANAGEMENT INTERNATIONAL GMBH

  CUSTODIAN AND TRANSFER AGENT
  INVESTORS BANK & TRUST COMPANY

  LEGAL COUNSEL
  SULLIVAN & CROMWELL LLP

  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  PRICEWATERHOUSECOOPERS LLP

  DIRECTORS AND OFFICERS
  CHRISTIAN H. STRENGER
  CHAIRMAN AND DIRECTOR

  DETLEF BIERBAUM
  DIRECTOR

  KURT W. BOCK
  DIRECTOR

  JOHN A. BULT
  DIRECTOR

  RICHARD R. BURT
  DIRECTOR

  JOHN H. CANNON
  DIRECTOR

  FRED H. LANGHAMMER
  DIRECTOR

  DR. FRANK TROMEL
  DIRECTOR

  ROBERT H. WADSWORTH
  DIRECTOR

  WERNER WALBROL
  DIRECTOR

  JULIAN F. SLUYTERS
  PRESIDENT AND CHIEF EXECUTIVE OFFICER

  PAUL H. SCHUBERT
  CHIEF FINANCIAL OFFICER AND TREASURER

  SANDRA M. SCHAUFLER
  CHIEF INVESTMENT OFFICER

  DANIEL O. HIRSCH
  CHIEF LEGAL OFFICER

  PHILIP GALLO
  CHIEF COMPLIANCE OFFICER

  VINCENT J. ESPOSITO
  VICE PRESIDENT

  KATHLEEN SULLIVAN D'ERAMO
  ASSISTANT TREASURER

  CAROLE COLEMAN
  SECRETARY

  HONORARY DIRECTOR
  OTTO WOLFF VON AMERONGEN

39511 (8/05)

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                         VOLUNTARY CASH PURCHASE PROGRAM
                         AND DIVIDEND REINVESTMENT PLAN

The Fund offers  stockholders  a Voluntary  Cash  Purchase  Program and Dividend
Reinvestment  Plan ("Plan")  which  provides for optional cash purchases and for
the automatic reinvestment of dividends and distributions payable by the Fund in
additional Fund shares.  Plan  participants  may invest as little as $100 in any
month and may invest up to $36,000 annually.  The Plan has been amended to allow
current  shareholders,  who are not already  participants in the Plan, and first
time  investors  to enroll in the Plan by making an initial  cash  deposit of at
least  $250 with the plan  agent.  Share  purchases  are  combined  to receive a
beneficial  brokerage fee. A brochure is available by writing or telephoning the
plan agent:

                         Investors Bank & Trust Company
                              Shareholder Services
                               P.O. Box 642 OPS22
                              Boston, MA 02117-0642
                               Tel. 1-800-437-6269
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
This report,  including the financial  statements  herein, is transmitted to the
shareholders  of The Germany  Fund,  Inc. for their  information.  This is not a
prospectus,  circular  or  representation  intended  for use in the  purchase of
shares of the Fund or any securities  mentioned in this report.  The information
contained  in the  letter  to the  shareholders,  the  interview  with the chief
investment  officer  and the report from the  investment  adviser and manager in
this report is derived from carefully selected sources believed  reasonable.  We
do not guarantee its accuracy or completeness,  and nothing in this report shall
be construed to be a representation  of such guarantee.  Any opinions  expressed
reflect the current judgment of the author,  and do not necessarily  reflect the
opinion of Deutsche Bank AG or any of its subsidiaries and affiliates.

Notice  is hereby  given in  accordance  with  Section  23(c) of the  Investment
Company  Act of 1940 that the Fund may  purchase  at market  prices from time to
time shares of its common stock in the open market.

Comparisons  between changes in the Fund's net asset value per share and changes
in the DAX index should be considered in light of the Fund's  investment  policy
and objectives,  the characteristics and quality of the Fund's investments,  the
size of the Fund and variations in the foreign currency/dollar exchange rate.

Fund Shares are not FDIC - insured and are not deposits or other  obligations of
or  guaranteed  by any bank.  Fund Shares  involve  investment  risk,  including
possible loss of principal.
--------------------------------------------------------------------------------

                                 [LOGO OMITTED]

                                       GER
                                     LISTED
                                     NYSE(R)

                 Copies of this report, monthly fact sheets and
                      other information are available at:
                               www.germanyfund.com

               For latest net asset value, schedule of the Fund's
                 largest holdings, dividend data and shareholder
                   inquiries, please call 1-800-GERMANY in the
                    U.S. or 617-443-6918 outside of the U.S.


                                       19




ITEM 2.         CODE OF ETHICS.

                Not applicable.

ITEM 3.         AUDIT COMMITTEE FINANCIAL EXPERT.

                Not applicable.

ITEM 4.         PRINCIPAL ACCOUNTANT FEES AND SERVICES.

                Not applicable.

ITEM 5.         AUDIT COMMITTEE OF LISTED REGISTRANTS

                Not Applicable

ITEM 6.         SCHEDULE OF INVESTMENTS

                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.

                Not applicable.

ITEM 9.         PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT 
                INVESTMENT COMPANY AND AFFILIATED PURCHASERS

THE GERMANY FUND, INC.

Item 9 of Form N-CSR - Repurchase Disclosure

----------------------------------------------------------------------
                                (a)                (b)
                                Total Number of    Average Price Paid
Period                          Shares Purchased*  per Share
----------------------------------------------------------------------

January 1 through January 31             31,500            $7.8674
February 1 through February 29           41,400            $8.0212
March 1 through March 31                 39,200            $8.1860
April 1 through April 30                 36,500            $7.8262
May 1 through May 31                     27,100            $7.6209
June 1 through June 30                    8,000            $7.8027

----------------------------------------------------------------------
Total                                    183,700           $7.9227
----------------------------------------------------------------------

--------------------------------------------------------------------------------
                               (c)                         (d)
                               Total Number of             Maximum Number of
Period                         Shares Purchased as         Shares that May Yet
                               Part of Publicly Announced  Be Purchased Under 
                               Plans or Programs           the Plans or Programs
--------------------------------------------------------------------------------

January 1 through January 31                n/a                        n/a
February 1 through February 29              n/a                        n/a
March 1 through March 31                    n/a                        n/a
April 1 through April 30                    n/a                        n/a
May 1 through May 31                        n/a                        n/a
June 1 through June 30                      n/a                        n/a

--------------------------------------------------------------------------------
Total                                       n/a                        n/a
--------------------------------------------------------------------------------

* All shares were purchased in open market transactions.

ITEM 10.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Nominating Committee will consider nominee candidates properly submitted by
stockholders in accordance with applicable law, the Fund's Articles of
Incorporation or By-laws, resolutions of the Board and the qualifications and
procedures set forth in the Nominating Committee Charter and this proxy
statement. A stockholder or group of stockholders seeking to submit a nominee
candidate (i) must have beneficially owned at least 5% of the Fund's common
stock for at least two years, (ii) may submit only one nominee candidate for any
particular meeting of stockholders, and (iii) may submit a nominee candidate for
only an annual meeting or other meeting of stockholders at which directors will
be elected. The stockholder or group of stockholders must provide notice of the
proposed nominee pursuant to the requirements found in the Fund's By-laws.
Generally, this notice must be received not less than 90 days nor more than 120
days prior to the first anniversary of the date of mailing of the notice for the
preceding year's annual meeting. Such notice shall include the specific
information required by the Fund's By-laws. The Nominating Committee will
evaluate nominee candidates properly submitted by stockholders on the same basis
as it considers and evaluates candidates recommended by other sources.



ITEM 11.        CONTROLS AND PROCEDURES.

(a) The Chief Executive and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on the evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.

(b) There have been no changes in the registrant's internal control over
financial reporting that occurred during the registrant's last half-year (the
registrant's second fiscal half-year in the case of the annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal controls over financial reporting.

ITEM 12.        EXHIBITS.

(a)(1)   Certification  pursuant to Rule 30a-2(a) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(a))  is filed  and  attached  hereto  as
         Exhibit 99.CERT.

(b)      Certification  pursuant to Rule 30a-2(b) under the  Investment  Company
         Act of 1940 (17 CFR  270.30a-2(b))  is furnished and attached hereto as
         Exhibit 99.906CERT.



Form N-CSR Item F

                                   SIGNATURES

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

Registrant:                         The Germany Fund, Inc.


By:                                 /s/ Julian Sluyters
                                    Julian Sluyters
                                    Chief Executive Officer

Date:                               August 30, 2005


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

Registrant:                         The Germany Fund, Inc.


By:                                 /s/ Julian Sluyters
                                    Julian Sluyters
                                    Chief Executive Officer

Date:                               August 30, 2005



By:                                 /s/ Paul Schubert
                                    Paul Schubert
                                    Chief Financial Officer

Date:                               August 30, 2005