LONDON, Nov 22 (Reuters) - European shares fell on Monday on worries that other euro zone peripheral countries will need to be bailed out like Ireland, with banks among the biggest fallers.
The FTSEurofirst 300 index of top European shares fell 0.7 percent to a provisional close of 1,094.02 points. It had risen to 1,110.42 earlier in the session in reaction to the proposed deal between Ireland, the European Union and the International Monetary Fund to rescue Ireland's shattered banks.
"There's nervousness over whether other countries will be embroiled in this," said Bill Dinning, head of strategy at Aegon Asset Management, in Edinburgh. Matthew Elderfield, Ireland's financial regulator, said on Monday capital could be immediately injected into the banks and a "standby contingent capital facility" could be added as a backstop to restore confidence.
Adding to Ireland's woes, Ireland's Green Party, the junior government coalition partner, called on Monday for an election to be held in January and said it would pull out of government once a series of fiscal packages and budgets were in place.
Financials were among the biggest sectoral losers, with Bank of Ireland down 19.1 percent. Other banks to fall included Spanish heavyweights Banco Santander and BBVA, down 4.2 and 4 percent respectively. (Reporting by Brian Gorman; editing by Simon Jessop)