DAVOS, Switzerland - The economic recovery in Europe is no reason for people to get excited and there are still two major risks, the chief of the UBS said on Wednesday.

Speaking at a session of the ongoing World Economic Forum here, Axel A. Weber, Chairman of the Board of Directors, of UBS told the audience that the recovery in Europe is "lackluster, uneven" across the European countries.

The growth of around 1 percent mostly from core countries in Europe is not enough to "close up gap" and "bring down unemployment" in Europe, Weber who used to be the German central bank president argued.

He expressed his concern that economic situations in most European countries will not improve this year although mood in financial markets may have improved.

At the same time, Weber also mentioned some good signs in Europe. "The optimism abounds, Eurozone is out of recession, indicators are improving, everyone expects the euro zone to grow, that's good," he said and added that it's normal to look on the bright side of things and get excited about the improvements after several years of crisis.

"It's true that tail risks have disappeared," said Weber.

Weber identified the European parliamentary election and the asset quality review by the European Central Bank (ECB) as the two main risks facing Europe this year.

The parliamentary election may result in more Europe skeptics in European parliament and the decision process in EU will become more complicated. With regard to the asset quality review of around 130 banks by the ECB, Weber was convinced that some banks will not pass the test.

This may trigger the comeback of some of the concerns about banks. And if banks' concerns do reemerge, risks about sovereigns will emerge, Weber explained.