Paula Suero Guillermo - Mon année de césure at European Central Bank (ECB)

TESTIMONIAL CAESARUS – Paula Suero Guillermo

Project Content

My project consisted of 2 6-month internships at the European Central Bank, in Frankfurt, Germany. There, I was part of the Financial Research Division within DG Research. I collaborated on many tasks but mostly focused on 3 projects assisting 3 different economists. In the first one, I studied the impact that ESG ratings of corporate bonds have on internal capital markets and lending within large conglomerates. In the second one, I was predicting the probability of default for European Corporate loans and exploring credit supply, demand  and  banks' risk pricing. In the final one, I helped to translate the code to produce the Composite Index of Systemic Stress from RATS (an old time-series language) to Python. This opportunity enabled me to build on the knowledge I acquired during my undergraduate studies and my M1 at TSE and to apply it to a real-world setting. I mostly  made use of  data management and econometric skills, and I learned many other things that I had not covered during my studies, such as SQL or certain databases that are proprietary to the ECB. The experience made me grow so much in different dimensions,  spanning  from the academic to the personal and professional. 

Integration

The integration process  for me  was incredibly smooth, and I settled in very easily. Germany is a European country, so I did not  really  experience any culture shock. Moreover, not speaking German was never a barrier, as  pretty much  everyone in the country speaks fluent English. However, it is important to note that your level of English must be quite high to succeed as an ECB intern. Still, I found it useful and nice to  put some effort into  learning a bit of the local language.  Personally,  I  really  liked the way the German society works: it is efficient yet prioritizes work-life balance, the standard of living is very high and there is a lot of trust in each other. Finally, it was also smooth for me to adapt to the corporate life. The fact that I was working for a public institution probably helped in this regard, and my team was fantastic in  terms of  making us feel welcomed, so I never struggled. 

Cost of living

Frankfurt, along with Munich, is a relatively expensive city in Germany, especially  when it comes to  rent. In any case, it is nowhere near the prices you can experience in other  European big  cities and overall the price level is much lower than in France. A room in a shared house is around EUR600. Food is very cheap, especially  if you buy  from supermarkets such as Lidl or Aldi. The ECB provides a free public bike subscription for free and  a really big  discount on  German  subway and railway. Still, the salary you receive as an intern is not very high. However, it will be enough to cover living expenses and  have a comfortable  stay. 

Services I benefited from

The ECB has several groups that can support you in different ways. These range from a trainees committee (that gathers feedback from the trainee cohort and raises them to the board), to several groups to practice different sports and theater (and other kinds of arts) clubs. I mostly benefited from the on-site gym, which I used to attend 3 to 4 times a week, and from the personal trainers who were there and helped me make a training plan. 

Expected level and pace of work

I believe the expectations from my division were quite high, especially in terms of econometrics knowledge and some general grasp of the main frameworks in micro- and macroeconomics. In this sense, the background I obtained during my undergraduate and my M1 at TSE was invaluable to perform and  be able to  make a meaningful contribution to the economists I was assigned to. In any case, I  am unable to  speak for other divisions within the ECB, as the nature of the work varies considerably. Moreover, the pace was pretty much self-regulated. You had some goals  that you  were expected to achieve, but you could certainly go faster if you felt like you could. Everyone  in  my team was very supportive and  understandable  and offered help whenever I got stuck and my pace was below expectations. Overall, it was not a stressful experience at all and the pace was more than manageable. 

Supervision

I was supervised by 3 different economists (who were the ones  doing research on  each of the 3 topics I mentioned in the first paragraph). Each one of them provided me with regular feedback, highlighting what I had done right as well as what I could improve. Their supervision and mentorship were invaluable for my development and I am very grateful that I got to work with and learn from such talented economists. It is  very important  to know how to take constructive feedback and to understand that it is  very important  for growth. 

Difficulties

I wouldn't  really  say I faced any major difficulties. If so, the worst was the weather! It can get very gray and dark in winter in Germany, so  at times it was  a bit complicated to stay active and social during rainy/cold days.  Other than  that, everything was very smooth and I loved my time there.

Assessment of objectives

My main goal to take a gap year and pursue an internship was to build on the academic skills I had developed during the previous years  to  apply them in a real-world setting. I managed to do this, and I felt very accomplished. Moreover, there were other objectives that I set myself on the way. One of them was to learn as much as I could about fixed-income instruments, their structure, and how they play a role in the wider financial system. Through the two projects I had on corporate loans and corporate bonds, I  was able to achieve  this knowledge, which will hopefully serve as a foundation for future work or research. Finally, when I arrived I realized that I wanted to improve my  knowledge  of Python, as it is a transferrable skill that is very much in demand in the current work environment. Again, I managed to dedicate a fair amount of time to such and to improve a lot, thanks to the project I had with the Composite Index of Systemic Stress. Regarding personal skills, I continued to foster my ability to work in team settings and to understand how to coordinate a group such that each other's strengths are brought to light.

Advice for future mobility/gap year candidates

My biggest advice is that you make the best out of your mobility year or gap year. Whether  it is by  attending another university, doing an internship, or taking on a personal project, it is a fantastic opportunity that not many other countries offer and where you can learn a lot about yourself, what you want in life, and how to get there. Do not be afraid to make mistakes and to find yourself in uncomfortable spaces or situations, because precisely there is where you will grow the most. 

Other personal thoughts

If you are considering applying for any of the ECB internships, please do reach out and I will be super happy to give you a hand with whatever I can!