(Reuters) - Fears of the euro zone suffering a return to recession or a period of deflation are unfounded, European Central Bank Governing Council member and Bundesbank head, Axel Weber, said on Wednesday. "I do not share fears of a double recession or deflation," Weber said in a speech at a banking conference Weber warned, however, that it was too early to declare the financial crisis over, saying that markets remained characterised by uncertainty and that setbacks could not be ruled out. He went on to say he backed German government plans for insolvent banks and urged regulation to be globally applicable. (Reporting by Marc Jones; Editing by Toby Chopra) http://www.reuters.com/article/idUSFLA8KE68V20100908