Hopes that $375 billion can boost European growth

The European Commission is implementing a 300 billion euro ($375 billion) investment package for Europe but structural reforms are still desperately needed, according to the man overseeing Europe's multi-billion infrastructure boost.

The Commission aims to provide up to 300 billion euros ($375 billion) of additional public and private investment over the next three years in order to create jobs, growth and competitiveness.

Jyrki Katainen, vice president for jobs, growth, investment and competitiveness, who has been charged with delivering the program, told CNBC that the program could help Europe recover.

"We need to put more emphasis in Europe on a growth and investment package which will help Europe to recover," Katainen told CNBC's "Worldwide Exchange" on Wednesday. "The investment package is not a one-off stimulus measure -- it's a program and process."

If all the money is raised and spent, the package could give the 28-nation European Union an additional 0.7 percent in gross domestic product (GDP) per year over three years, according to Reuters.

The program includes measures such as boosting liquidity to European investment banks in order to increase their lending capacity to small and medium-sized enterprises to investment in education and infrastructure projects.

Read MoreJob losses and weak demand dent euro zone economy

Despite the Commission's package, Katainen was adamant that euro zone countries needed to implement strict budget discipline -- such as keeping budget deficits within a limit of three percent of GDP set by the Commission – in order to attract investment.

"All the countries must follow the rules," Katainen, a former prime minister of Finland, said. "We have accepted the current set of rules together and all countries must be treated similarly, meaning that the Commission must treat the big and small countries in a similar way because we need to increase confidence in the currency union."

"We have to highlight the need for structural reforms because one of the reasons that economic growth and also investments are lagging behind is that countries are not competitive enough," he said.

Italy was one of the countries trying to implement reforms to its rigid labor laws to restore competitiveness but countries like France needed to do more on this front, he said.

France and Italy, the euro zone's second and third largest economies respectively, have recently incurred the wrath of the European Commission by apparently ignoring budget deficit rules in draft versions of their 2015 budgets.

Read MoreEuro zone GDP beats, Greece emerges from recession

Brussels cleared both budgets at the end of October, despite the budgets remaining in breach of EU rules, after both countries agreed to additional deficit cutting measures.

"We know that the economic situation is very challenging in France but it's the same in many other countries," Katainen said.

"Budget cuts and consolidation are not an end in themselves, it's a way to make sure that the social model in Europe will continue," he said. "The rules have been created in order to secure ordinary people's economies and ordinary people's social benefits, that's why the Commission wants to encourage member states to look after their economies."

- By CNBC's Holly Ellyatt, folow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld