"The problem is simple: Greece's creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks' willingness and ability to see through the reform agenda that the country so desperately needs," Varoufakis said in a Project Syndicate blog post, published on Monday.
"Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease," he added.
At the same time, former colleague, fellow economist and close friend of Varoufakis, Steve Keen said the finance minister was frustrated with the progress of Greece's talks with the euro zone, adding Varoufakis had compared the talks to dealing with "divorce lawyers".
Keen, chief economist of the Institute of Dynamic Economic Analysis (IDEA) who is credited with forecasting the economic crisis from as early as 2005, said the finance ministers of Europe refused to discuss certain euro policies, according to Varoufakis.
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Keen, who also heads up the school of economics, history and politics at Kingston University in London, first met Varoufakis when they both worked as lecturers at Sydney University in the late 1980s.
When asked what they mainly discuss at the moment, Keen said, "Mainly his frustration, the fact that the one thing that he can't discuss with the finance ministers of Europe is economics," he told CNBC.
"He goes inside, he is expected to be discussing what the economic impact of the policies of the euro are and how to get a better set of policies, living within the confines of the euro and the entire European Union system, and he said they simply won't discuss it. He said it is like walking into a bunch of divorce lawyers, it is not anything like what you think finance ministers should be talking about," Keen said, adding that he thought current austerity reforms being suggested by the euro zone were a "fantasy".