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Muslims' sense of belonging could be eroded by European nations not tackling discrimination, a watchdog has warned.
A report by a European Union-backed anti-racism body says the number of Islamophobic incidents in the 25 member states is probably under-reported.
The report calls on governments to speed up Muslim integration - but says Muslims must also do more to counter stereotypes and fears of extremism.
At least 13 million Muslims are thought to live in European states.
In the report, the European Monitoring Centre on Racism and Islamophobia (EUMC) says it has documented a wide range of anti-Muslim or Islamophobic abuse across the EU's 25 member states.
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1.At least 13 million Muslims are thought to live in European states.
I would rewrite the above as follows:
2.They think at least 13 million Muslims are living in European states.
What makes the difference between my sentence and the original?
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That "translation" may work for your own use/understanding, but it's not saying the same.

are thought to live is impersonal
yours is personal, as you have an explicit they

And forget about rewriting it, it's very good as it is.
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Thanks Marius
So this is impersonal.

If you replace 'are thought to live ' with ' are believed to live' , is it impersonal too?
RexThanks Marius
So this is impersonal.

If you replace 'are thought to live ' with ' are believed to live' , is it impersonal too?
Yes. It is also passive, while your first version "They think" is active.