* FTSEurofirst 300 closes 0.8 percent lower
* Banks heaviest fallers; Bank of Ireland down 19 percent
* Autos accelerate, boosted by broker note
By Brian Gorman
LONDON, Nov 22 (Reuters) - European shares fell on Monday, led by banks, on worries that other euro zone peripheral countries will need financial assistance packages similar to that of Ireland. The FTSEurofirst 300 index of top European shares fell 0.8 percent to close at 1,093.45 points.
It had risen 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.
He remained optimistic on the outlook for equities.
"We think the stock market will head up. Valuations are not too demanding. What we need is some confirmation of exactly what assistance will be given to Ireland, and then we can focus again on the cyclical side, and earnings, which have been supportive."
Banks were among the biggest losers, with Bank of Ireland down 19.1 percent. Spanish heavyweights Banco Santander and BBVA fell 4 and 3.9 percent respectively.
Matthew Elderfield, Ireland's financial regulator, said on Monday capital could be immediately injected into the banks and a "standby contingent capital facility" added as a backstop to restore confidence.
Adding to Ireland's woes, its 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.
Investors continue to worry the euro zone's sovereign debt crisis could derail the region's fragile economic recovery and force countries to restructure their debt.
Other banks to fall included BNP Paribas, Societe Generale and UBS, down between 2.1 and 2.8 percent.
Across Europe, Britain's FTSE 100 and France's CAC40 ended the day 0.9 and 1.1 percent lower respectively. Germany's DAX fell 0.3 percent.
Ireland's ISEQ was down 1.5 percent, Spain's IBEX fell 2.7 percent and Italy's FTSE MIB index slipped 1.9 percent. The Thomson Reuters Peripheral Eurozone Countries Index fell 2.5 percent.
Spain will aim to raise 3 billion to 4 billion euros at a treasury bill auction on Tuesday, with yields expected to rise from previous sales on the back of a steady growth in risk premiums spurred by Ireland's debt crisis.
AUTOS ON MOVE
On the brighter side, the STOXX Europe 600 Automobiles & Parts index rose 0.9 percent on a positive BofA Merrill Lynch note. BMW, Volkswagen and Porsche gained between 1.8 and 4.9 percent.
Miners suffered as metals prices weakened, with the dollar gaining against the euro. Anglo American and Lonmin fell 1.7 and 2.5 percent respectively.
Wall Street was lower around the time European bourses were closing. The Dow Jones and S&P 500 were down 0.7 and 0.6 percent respectively. The Nasdaq Composite was flat. (Graphics by Scott Barber; Editing by David Hulmes)