* Italian and Spanish stock markets fall* Traders cite concerns over European elections this week* Rising demand for protection in case FTSE MIB falls* FTSEurofirst 300 closes up 0.1 pct at 1,366.29 points* Raiffeisen rallies after Q1 resultsBy Sudip Kar-GuptaLONDON, May 22 (Reuters) - Italian and Spanish stocks underperformed firmer equity markets elsewhere in Europe on Thursday, as traders said