By Marc Jones LONDON (Reuters) - World shares hit their highest level in almost five years on Tuesday as last week's strong U.S. jobs report continued to fuel optimism about the health of the global economy. Japanese stocks jumped in a delayed reaction to the data because Tokyo had been closed for a public holiday on Monday. The head of the European Central Bank added to the positive mood by saying it was ready to cut rates again if needed.

By Robin Emmott and Francesco Guarascio BRUSSELS (Reuters) - The EU's trade chief will recommend placing punitive import duties on billions of euros of solar panels from China, people close to the matter say, putting up a barrier to protect European producers but risking upsetting Beijing. The case, the biggest the Commission has ever targeted, highlights the balancing act facing Brussels as Europe tries to protect against cheap imports while needing China, the EU's second largest trading partner, to help it emerge from recession.

PARIS (Reuters) - European Union Internal Market Commissioner Michel Barnier, the EU's top financial regulator, called on the French government to pursue its planned reforms despite the Commission allowing two more years to meet its budget deficit target. Olli Rehn, the European monetary affairs commissioner, said on Friday France badly needed to unlock its growth potential and create jobs, adding Spain, Italy and the Netherlands as well as France - four of the euro zone's five largest economies - would remain in recession this year.

Crisis talks between leaders of the EU's three institutions on Monday threw up a compromise on the bloc's 2014-2020 budget, just days before a key European summit, French EU lawmaker Alain Lamassoure told AFP. European Commission president Jose Manuel Barroso, European Parliament chief Martin Schultz and Irish premier Enda Kenny, whose country currently holds the rotating EU presidency, struck a deal to break a deadlock over the next budget as a summit of feuding national leaders looms on May 22.