Euro 2020 will be held in 13 cities across the continent and the semi-finals and final will be played in the same stadium, European football's governing body UEFA said in January.
"A tournament should be played in one country. That is how you create identity and euphoria," said Blatter, the head of world football's governing body.
"They have fragmented the 2020 tournament. So it is not a European Championship any more. It has to have a different name," he told German kicker magazine. "I do not know what name."
"Such a Euro lacks heart and soul," said Blatter.
The Swiss sports administrator also said he planned to end his stint at the top of the world football's governing body in 2015 if FIFA was strong and stable.
"I want to push through the FIFA reforms at our congress in Mauritius in May, then we go to Brazil for the World Cup in 2014 and after that everything is open."
"When it is secured that FIFA will continue to be led like that, that it will remain global and the pyramid will not collapse then I will gladly hand over the sceptre to a new president," he said.
"I do not know if he wants to," said Blatter. "He has an idea about the future of FIFA which he has to explain to the continents at some point. But he has not decided yet."
