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Israel's ruling coalition partner Kadima has threatened to pull the plug on its alliance with the Likud party in response to Prime Minister Benjamin Netanyahu's decision to dismiss a panel charged with making recommendations for reforms to make more ultra-Orthodox Israelis and Arab citizens eligible for military service.

Many Israelis are angry that thousands of ultra-Orthodox citizens have military service exemption based on religious grounds. Be Free, a non-governmental organisation promoting religious freedom and equality in Israel, estimates this costs the state three billion euros a year.

Executive Director Of Be Free Israel Miki Gitzin:

"The major problem here, actually, it started with the establishment of the state of Israel back in 48' the Prime Minister Ben Gurion had allowed 400 only ultra-Orthodox students not to serve in the army. Today we are talking about more than 60 thousand people mostly from the ultra-Orthodox community who do not serve in the army legally."

Netanyahu has previously indicated he would be in favour of making changes but recently the Prime Minister has been coming under growing pressure from ultra-Orthodox members of his coalition to block the conscription reform.

In ultra-orthodox communities, talk of change to the law has not been welcomed.

Resident of Mee Shearim neighbourhood Simcha Folg

"For whatever reason in this military state they need everybody to serve in the army. In most countries it's not like that and therefore most people serve functioning roles".

The issue is set to test the two month old alliance between Likud and Kadima to breaking point, as Vice Prime Minister and Kadima chief Shaul Mofaz has vowed to bring down the government if reforms are not followed through. In a recent poll conducted by the Jerusalem Post a majority of Israeli's agreed reforms should be implemented.