UPDATE 1-Brown defies rebels ahead of European election results

* PM will 'not walk away' from country's troubles

* Ruling Labour Party set for 'terrible' European results

* Brown supporters say to ditch him would be 'madness'

(New lead and adds Gordon Brown quotes, para 4)

By Avril Ormsby

LONDON, June 7 (Reuters) - Britain's Prime Minister Gordon Brown told supporters on Sunday he would not walk away from the country's troubles, ahead of European election results likely to damage the government and weaken his grasp on the premiership.

Poor results were expected to provide further ammunition for Labour Party rebels who fear that unless Brown resigns they will lose the parliamentary election that must be held within a year.

At a Labour event in London, staged to show Brown still had support among grassroot party activists at the end of a tumultuous week, he set out his policies on public services for the coming weeks and months.

He said the country had been through a "testing time" politically and economically, but added: "What would they (the public) think of us if ever we walked away from them at a time of need. We are sticking with them."

Brown is under pressure after a drubbing in Thursday's local election, and a reshuffle overshadowed by the resignation of six senior ministers, one of whom called for him to step down.

Media reports said the Labour Party could come third or even fourth in the European election, the results of which are to be published on Sunday evening.

Voter anger at lavish expense claims by members of parliament during one of the worst recessions in decades could see the far-right British National Party (BNP) gain its first seat in the European Parliament, analysts say.

Welsh Secretary Peter Hain told Sky News the results are going to be "terrible" -- for all mainstream parties.

Labour could trail the main opposition Conservative Party, the anti-European UK Independence Party (UKIP) and the Liberal Democrats.

BROWN MAY BE DEVISIVE FIGURE

Last week, sterling was hit by speculation over Brown's future, and if he manages to survive the current crisis, it looks likely he will wait for as long as possible before calling the next election.

Critics say the party lacks a coherent policy agenda and that Brown is indecisive and a poor communicator, adding he appears to be unable to transfer his confidence on the world economic stage to domestic politics.

Labour's Charles Falconer, a former senior Labour minister, told the BBC Brown may be too divisive a figure.

"Can we get unity under the current leadership? I am not sure that we can and I think we need to debate it urgently and I think probably it will need a change in leader," he said.

The Parliamentary Labour Party is due to hold a meeting on Monday, and some members may be tempted to sign an email which media reports said calls on Brown to quit.

The Conservative Party, with a commanding lead in opinion polls, has called for an early election, which could see it return to power for the first time since 1997.

Brown still receives backing from some key Labour figures, including the new Health Secretary Alan Johnson, the man tipped to succeed if he goes.

Jon Cruddas, who has strong union support, wrote in the Labour-leaning Sunday Mirror tabloid: "Everyone knows our government is in trouble. Serious trouble. But to suggest that we'll tackle those problems simply by chucking Gordon Brown overboard is madness."

Brown's position is bolstered by an apparent lack of an organised plot to oust him.

"It would require somebody to stand against him, somebody who is raising their standard and saying that they could do a better job and we don't have that person," said Peter Mandelson, the ex-EU Commissioner appointed by Brown as Business Secretary.

A change of Labour leader would raise the prospect of a snap election. Brown has not faced the electorate since he took over as prime minister from Tony Blair two years ago. (Editing by Diana Abdallah)