AUDIO: EU banking union 'not feasible'

BRUSSELS (Reuters) -

Dr. Doom got it wrong. The parade of economists and investors led by Nouriel Roubini predicting Greece’s ejection by now from the eurozone failed to appreciate the resolve of European policy makers to protect their union and the amount of pain Greeks are willing to stomach.

German chancellor Angela Merkel and French President Nicolas Sarkozy proposed a "quick new stability pact" that allegedly will bypass the need for treaties. However, there is already disagreement over the role of the ECB. Please consider Germany, France plan quick new Stability Pact

There was progress of sorts at the EU summit in Brussels last week, with European Union leaders agreeing to set up a single bank supervisor for the 17 countries that use the euro.   The deal represents a compromise between the Germans and the French: the body will supervise all 6,000 lenders in the euro zone, as the French had required, but there is no exact starting date, which seems to suit the Germans who prefer the go-slow approach.