Currywurst and kosher

Israel is not a theocracy, it is a Democracy. The National religion is Judaism, like France's National religion is Christianity. As for keeping Kosher, since the laws of Judaism hasn't changed, Orthodox people do keep Kosher as Muslims keep their Halal laws. The leaders in Israel are not Rabbis nor do they profess to be, Judges aren't Rabbis either and when deciding a case they go by Israeli laws and not the Jewish Laws.

In Israel there are problems in that Orthodox women who get a civil divorce meaning a divorce according to Israeli law can't get a divorce in Rabbinical court so they have trouble in remarrying.The Civil and Rabbinical courts are separate and take care of different things. Israel although founded to be a Jewish state is also a State with laws that do not have anything to do with Judaism. If you read about how Israel came to be, you will find that most of the leaders of the movement were not religious, including the Prime Ministers of Israel, and wanted to keep certain things religious and others secular.