Balotelli threw his shirt to the ground at the final whistle and sparked furious anger from the home fans.
Baggio was at the San Siro for the game and remarked: "Inter were hungry, were very good and have played a great game. It was hard to react after the goal of Barcelona. But now the Nou Camp will be tough, they must hold on.
"The incident with Balotelli? I was sorry to see it, because you do not want to criticise people, but it was a really strong gesture, too bad, really."
Baggio added: "Could I come back to football? We'll see ..."