Among the interesting charts here in Ciaran O'Hagan's article for December this year, is one that shows Ireland as probably the most indebted state per capita globally, by quite a bit. This is not including bonds. I've heard this said before, but not found a source for it.
It makes sense, as Ireland went through a period of apparently being very credit worthy with AAA ratings, full employment, high wages and a property boom which lured many people into taking out multiple "investment" mortgages and loans. Also, a lot of very large new cars about the place, and people who spent 20,000 euro plus on weddings.
The implications of that chart is that any significant interest rate increase would vaporise the finances of many households and finish off the banks and anyone else owed money by Irish people.
There can be no conventional solution to this.