In a letter to European Union leaders, Jose Manuel Barroso said: "Whatever the factors behind the lack of success, it is clear that we are no longer managing a crisis just in the euro area periphery."
He called for a re-assessment of all elements of the eurozone's current and future bailout funds.
And he told them the eurozone needs to convince markets that it can respond to the debt crisis.
The comments contributed to a 5th day of sell-offs on the FTSE 100.
Gold reached another record high of $1,677.9 as investors made a renewed bid for safe havens.
After leaving the eurozone's benchmark interest rate at 1.5% today, European Central Bank president Jean-Claude Trichet confirmed that the programme to purchase eurozone government bonds had not ended.
The ECB's Securities Markets Programme (SMP) has bought around 74 billion euros in public debt so far, to help support the financial system with liquidity.
The interest which the Italian and Spanish governments have to pay to service their debts climbed to record levels on Tuesday of 6.18% and 6.45% respectively.
At his news conference, Mr Trichet would not confirm whether the bank is propping up Spanish and Italian bonds through the (SMP).
The developments follow a grim verdict on the eurozone by the think tank Centre for Economics and Business Research (CEBR) which believes Italy will default and fall victim to the debt crisis due to its weak economy. Read More