At talks in Downing Street, Chancellor George Osborne warned Mr Varoufakis that his stand-off with his country’s eurozone creditors risked destabilising the entire global economy.
Mr Varoufakis is engaged on a whistle stop tour of European capitals in a bid to win support for the new Syriza government’s attempt to re-negotiate the terms of the country’s 240bn (£179bn) international bailout.
‘Breath of fresh air’
However, speaking to Channel 4 News, Mr Varoufakis said talks had gone well: “It was an extremely constructive meeting. It was a breath of fresh air actually.
“My feeling leaving 11 Downing Street was that we have a very constructive relationship. We had a wonderful meeting and despite our differences we’re highly tuned to finding common ground. I think we already have found it.
Mr Varoufakis added: “[We have] a determination to put an end to the extended pretence cycle which has rendered Greece a festering wound on the side of the eurozone, which even for Britain, which is not a member of the eurozone, is a great concern because the deflationary crisis in Europe certainly doesn’t augur well for the British economy.”