Former Greek finance minister Yanis Varoufakis has said that everyday life in Greece is unsustainable and that the country’s European creditors are going after the “little people” rather than “corrupt oligarchs”.

Speaking to BBC Radio 4’s Today programme, the 55-year old economist said that the country has been put on a fiscal path which makes everyday life “unsustainable” in Greece.

“The German finance minister agrees that no Greek government, however reformist it might be, can sustain the current debt obligations of Greece,” he said. Earlier in the day, Wolfgang Schäuble told German broadcaster ARD that Greece must reform or quit the euro.

“A country in desperate need of reform has been made unreformable by unsustainable macroeconomic policies,” Mr Varoufakis said.

He said that “instead of attacking the worst cases of corruption, for six years now the creditors have been after the little people, the small pharmacists, the very poor pensioners instead of going for the oligarchies”.

Greece in 2010 was given a huge loan that Mr Varoufakis said was not designed to save the bankrupt country but to “cynically transfer huge banking losses from the books of the Franco German banks onto the shoulders of the weakest taxpayers in Europe”.

Earlier this week, the International Monetary Fund (IMF) warned Greece’s debts are on an “explosive” path, despite years of economic reform.

Golden Dawn rally in Athens, Greece Show all 9 1 /9 Golden Dawn rally in Athens, Greece Golden Dawn rally in Athens, Greece Nikolaos Michaloliakos, leader of the Golden Dawn party, addresses supporters in front of the party's offices in Athens during the commemoration of the death of three officers in 1996 during the Imia crisis that brought Greece and Turkey to the brink of war Getty Images Golden Dawn rally in Athens, Greece Supporters of Greece's far-right Golden Dawn party lift torches and wave national and party flags during an annual rally to commemorate the 21st anniversary of the Imia dispute, in Athens, Greece Reuters Golden Dawn rally in Athens, Greece Golden Dawn supporters wave flags and chant slogans in front of the party's offices in Athens to commemorate the death of three officers in 1996 during the Imia crisis that brought Greece and Turkey to the brink of war Getty Golden Dawn rally in Athens, Greece Supporters of Greek ultra nationalist party Golden Dawn hold Greek national flags and torches during a gathering of Greek nationalists in central Athens, to commemorate the death of three Greek military officers Getty Images Golden Dawn rally in Athens, Greece Supporters of the Greek ultra nationalist party Golden Dawn hold Greek national flags and torches during a gathering of Greek nationalists in central Athens, to commemorate the death of three Greek military officers Getty Images Golden Dawn rally in Athens, Greece Protesters hold banners in a march to the US Embassy and to the offices of far-right wing party Golden Dawn, during an anti-fascist rally organized by leftist movements in Athens, Greece EPA Golden Dawn rally in Athens, Greece Protesters hold banners in a march to the US Embassy and to the offices of far-right wing party Golden Dawn, during an anti-fascist rally organized by leftist movements in Athens, Greece EPA Golden Dawn rally in Athens, Greece Supporters of Greece's extreme right Golden Dawn party raise torches during a rally commemorating a 1996 military incident which cost the lives of three Greek navy officers and brought Greece and Turkey to the brink of war, in Athens AP Golden Dawn rally in Athens, Greece Supporters of Greece's extreme right party Golden Dawn attend a rally in Athens AP

The IMF has insisted on additional debt relief and reduced fiscal targets before it participates financially in Greece's current bailout program. Germany, which faces national elections, has resisted such moves.