FRANKFURT (Reuters) - Central banks are largely powerless to revive euro zone economic growth, and the responsibility instead lies with governments, Bundesbank President Jens Weidmann said on Friday, warning against overburdening monetary policy.

Trying to solve Europe's structural problems with loose monetary policy risks not only failure but a repeat of the mistakes of the 1970s, a period characterized by high unemployment and high inflation, said Weidmann, a long critic of the European Central Bank's unprecedented stimulus.

https://beta.finance.yahoo.com/news/ecb-policy-largely-powerless-propping-110008218.html

Total chaos reigns in European banking stocks this morning as Monte Paschi shares crash, soar, and plunge amid on-again.

Bankers say reforming a fragmented system, of more than 500 banks, with weak profitability requires deep cuts of between 50,000 and 150,000 jobs by some estimates.

http://www.zerohedge.com/news/2016-12-21/european-banking-bloodbath-spreads-spain-after-italy-fires-%E2%82%AC20-billion-bazooka-%E2%82%AC360-

Having failed to secure a private sector rescue after its anchor investor Qatar balked at sinking another $1 billion into the perpetually insolvent bank, Italy's Monte Paschi is set to be nationalized as soon as 7:30pm CET today when the Italian cabinet is expected to meet and decide on a bank decree. The EU is said to have approved the Italian bank decree.

As Bloomberg notes, the Italian government set to intervene soon after expected failure of Monte Paschi recapitalization plan, says senior Italian official who asked not be named before cabinet discusses banks' decree. The decree would set up a €20 billion fund which would intervene when recaps by banks are not supported by market.

If you're wondering why a VAT would be a bad idea, here's a chart showing how the burden of government spending in Europe increased once that tax was imposed.

I'm not a fan of VAT because I think obfuscation is a bad idea when it come to budgets and taxation.  BTW, I am just barely old enough to remember when Republicans were truly fiscally conservative instead of deficit makers.  I knew this girl from HS who took her college money and brew it on  limousines and cocaine; she had a great three months.