Religion in democracy

Unfortunately religion plays a large role in the workings of the State of Israel. How could it not, given that religious interests have taken over many areas of political activity. I remind the readers that the founding of the State was almost entirely secular. The early settlers were mostly Jews who had thrown off the yoke of religious passivity (leaving everything to God) and had taken action for their own survival. The early Zionists saw this as only being possible in a Jewish State with its own sovereignty. I emphasize that contrary to wide-spread belief the State was not founded because of Jewish belief in biblical prophesy!
There are two main areas in which Judaism has currently interfered in the progress of the State's functioning. The first is the area of conversion, which has become an area of contention between ultra-orthodox and merely orthodox and other denominations. At first the clash was between all orthodox on one side and the more liberal groups, Conservative and Reform, on the other. But, several years ago accomodations and compromises were arrived at allowing the State to establish Committees that could accept conversions to Judaism, basically under Orthodox guidelines. One has to be Jewish (by birth or conversion) to automatically receive Israeli citizenship under the Law of Return (although it is possible for non-Jews through a different process).
However, recently, a haredi (ultra-Orthodox) rabbi who was investigating a case of divorce, discovered that the woman in the case was a convert, and he decided that her conversion had not been "kosher" and so he abrogated it. In doing so he effectively cancelled the conversions of hundreds of other people who had been processed by the State-approved conversion courts. This was not a chance incident but was deliberate, since the cancellation of someone's conversion is both religiously and morally questionable. It was in fact a direct attack on the religious court chaired by Rabbi Haim Druckman, who is certainly Orthodox, but not haredi. This action has now thrown the conversions of hundreds of people into doubt and has resulted in a crisis facing those who seek to convert to Judaism but who do not intend to live as ultra-Orthodox Jews.
Another area where religion has raised its ugly head is in relation to politics. Of course, the religious parties seek to improve the situation of their supporters and adherents through the political process. But, this has become a situation of naked blackmail, where the religious parties, notably Shas, exact a large price for their involvement in a coalition government, as is currently the case with Kadima. But, then being Ministers in that Govt. they have the power to control and prevent legislation that they don't like.
Amazingly a coalition of the three main parties, Labor, Likud and Kadima agreed on a draft bill to replace the current electoral system of proportional representation, that represents party interests before it represents those of the people, with a system of direct representation. In this bill between 30-60 of the MKS would be elected by district or direct representation, the rest being elected as now. This bill was all set to leave the committee and be presented to the Knesset, when in steps a Shas MK named Meshulam Nahari (Minister without Portfolio), who vetoed it! Because it is now vetoed it cannot be presented to the Knesset and cannot become law. The sponsors of the bill may try to present it as a private member's bill, but that has reduced chances of passing. Nahari stated that he opposed the bill because it was against his party's interests. In this way religious interests frustrate the workings of the democratic system.