The ECB runs policy to suit the Germans and French.
No, it does not. The bulk of the European economy is derived from France and Germany, and in sustaining as much of Europe as possible, policy is inevitablely skewed towards industries in those countries. Nevertheless, policy rates are determined by consensus & voting amoung all €uro area central bankers - France and Germany simply do not outvote the remainder.
As far as Ireland goes, it is not going the same way as Iceland, as it cannot inflate its way out of the debt problem (as Italy and Greece for example did in the past). Instead it must deflate painfully, causing wages to fall - not ony a hard economic task, but a painful political task.
Expect governments there to fall, but ultimately the Celtic tiger will get through it, and survive.