EU Will Support Ireland 'If Needed'
Yields on Irish bonds have hit record highs, a sign investors are worried about the country's ability to meet all its debt obligations, BBC News said.
"In case of need, the EU is ready to support Ireland," Barroso said.
"We are monitoring the situation closely, but we support the efforts of the Irish authorities [to reduce the budget deficit]," Barroso said.
The Irish economy plunged into recession after years of boom, as the real estate bubble burst and the government spent billions to bail out banks including Allied Irish Banks (AIB) and Anglo-Irish Bank.