Mr Varoufakis hit out at the Brussels bloc over its enforced austerity on the country and control over the Greek parliament.
Attending an anti-EU movement event in Athens, the economist said Greek MPs had voted for debt measures they “did not believe in”.
Greek MPs voted for a £4.3billion round of pension cuts and tax increases ahead of a meeting in Brussels to discuss further possible EU bailout funding.
Speaking at the DiEM25 session, Mr Varoufakis blasted Greece’s “never ending depression”.
Yanis Varoufakis said the Greek parliament vote was a "fresh farce"
The members of parliament supporting the government voted for measures that they do not believe in
He said: “Last night a fresh farce was performed in the Greek parliament. The Greek parliament was debased yet again.
“The members of parliament supporting the government voted for measures that they do not believe in and the members of the opposition voted against measures that they would have voted in favour of had they been in government.
“This debasement of democratic politics is what you get when you have seven years of a great depression, a never ending depression which is being constantly reinforced by the measures of austerity and further toxic loan tranches which are part and parcel of the problem, not of the solution.”
Protest in Greece turns violent
Tue, May 16, 2017
Shocking photographs depict clashes between police and protesters
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Protesters clash with riot police during a protest at Syntagma square, in Athens, Greece, 17 May 2017
The austerity measures include pension cuts in 2019 and tax hikes in 2020 which could save the indebted nation billions of euros.
But the steps have been met with anger by the Greek people who took to the streets in protest.
In a bid to dig Greece out of its hole, Prime Minister Alexis Tsipras will send his finance minister Euclid Tsakolotos to Brussels for Monday’s Eurogroup meeting with European Union partners.