DUBLIN, June 10 (Reuters) - Ireland's government is expected to survive a motion of no-confidence on Wednesday but political uncertainty will linger due to unease in the junior coalition party and backbenches about tough fiscal measures ahead.

Prime Minister Brian Cowen can rely on the support of the Greens during the important vote but the party has warned that another austerity budget in December could make their partnership difficult.

Investors are worried that political pressure in the aftermath of humiliating government losses in local and European elections will discourage Cowen from unpopular spending cuts to tackle the worst budget deficit in the eurozone.

They are also concerned about the amount of debt Dublin will need to raise to cleanse its banking sector of soured loans following the collapse of a local property bubble.

"The confidence that can be displayed in this government is on the basis of our preparedness to take the decisions that have brought short-term unpopularity," Cowen said in defence of his administration during a stormy parliamentary debate.

MOODY'S REVIEW

Moody's will conclude its review of Ireland's AAA rating after a visit to the country in the coming weeks but the prospects do not seem rosy after rival agency Standard & Poor's cut its rating to AA, the second reduction in three months, and kept the outlook on negative this week. [ID:nL8601886]

Dublin has to squeeze 8 billion euros in spending cuts and tax hikes, on top of previous measures, in 2010-11 to bring its budget deficit under European Union limits by 2013.