"The interest rates on Italian and Spanish sovereign debt has caused EU leaders to press the panic button. They are blaming everybody and everything, but themselves and their ill-thought vanity project that is the euro. Today they have tried to shout 'stop' in front of the market storm - their words are futile.
"It is tragic that they will throw billions of taxpayers' money down the drain, before they finally realise two simple things: One, that the financial markets always win, and Two, the euro as designed, was a doomed project from the start.
"When Hermann Van Rompuy writes, 'It is imperative to bear in mind that this is not a crisis about the euro,' I don't know if we should laugh or cry."
In his statement, released by the Commission this afternoon, José Manuel Barroso said that "the systemic nature of the sovereign debt crisis was recognised by the Heads of State and Government of the euro area at their meeting of 21 July."
Barroso confirmed that agreement was "reached on ground-breaking measures that will reinforce the euro area’s systemic response to the crisis by enhancing the effectiveness of the European Financial Stability Facility (EFSF), by reforming euro area governance structures and by adapting our working methods to the needs of crisis management with each institution playing its part."
He added that it was essential "that we move forward rapidly with the implementation of all of that has been agreed by the Heads of State and Government and send an unambiguous signal of the euro area’s resolve to address the sovereign debt crisis with the means commensurate with the gravity of the situation.
"The necessary technical work to implement the measures agreed on 21 July is already underway and will be completed as a matter of urgency. The Commission services are actively supporting the Member States in this technical work. Implementation of some of these measures will also require actions by national parliaments and today I am writing to the Heads of State and Government urging them to ensure that these actions are taken without delay," Barroso concluded.
Meanwhile, EU Council President Herman Van Rompuy published an op-ed in several European papers.
He writes: "Astonishingly, since our summit the cost of borrowing has increased again for a number of euro area countries. I say astonishingly, because all macro economic fundamentals point in the opposite direction."
The Greek bailout conditions are "exceptional" and mark no precedent for other countries, he added.
Citing the austerity measures adopted in Italy and Spain, as well as Madrid's low debt, Van Rompuy accused the markets of making risk assessments "totally out of line with the fundamentals." Ratings agencies which downgraded the two countries also acted in a "ludicrous" way when putting them in the top tier of default risk countries, he claimed.
He omitted to mention that the Spanish premier last week called for early elections in November, faced with growing public anger over soaring unemployment, a factor which has been aggravated by the austerity measures.
The true cause of market worries, in Van Rompuy's view, lies elsewhere - the aftermath of the financial crisis of 2008 and the interdependence with the debt-stricken US.
"It is imperative to bear in mind that this is not a crisis about the euro," he wrote.