The Republic is gone. Observe:
There had been no instances where the Grand Circle had stooped into chaos and quite pathetic fistfights. Until now. At the threshold of a new and far more devastating war, the Circlemen who normally only made loose alliances were coalesced into three large factions. There were the Pacifists, the Loyalists and the Revivalists. This was all nice and brought a gust of initiative into the Grand Circle, but now they were reduced to outright violence and complete disorder. The only amusing part of it was that the Pacifists, who initially refrained from resorting to more physical argumentation were dragged into the fight as well, as the seats of their prominent members were caught between those of the two other factions. The Loyalists and the revivalists had started several fights already, and their seats were all gathered now in the north and south sector of the Stone Circle in Ruby. (The capital is temporarily moved here, for obvious reasons)
This fight was, like any of the other, one caused by the matter at hand: the war against the Lengels and the Gerber. The situation was rather desperate, and debates about the future policy had already stalled several times even before the army that went on berzerk in Gerber had returned. One punch spawned a dozen others, resulting in the session to be cancelled by the increasingly annoyed and pressed Mother Kirith Sakari. Upon the arrival of the army, all greatly rejoiced in the successful assault for revenge, but tensions rose again quickly, and the ongoing strife was on again. The Mother had no real sympathies among the factions, although the Loyalists were her supporters - if any were.
The truth was, she was too undecided and impartial to be their leader, thus she was largely abandoned by the Loyalists, and ignored by all. This was confirmed even more when her pathetic attempts to make peace with the Lengels and the Gerber (the latter a matter that enraged all but the Pacifists, and then some) which also meant that the Pacifists were all but defeated. Thus, the war was really on, as well as the war between the Loyalists and the Revivalists.
As much as the Pacifists are rather self-explanatory, the other two might not be. The Loyalists stood in opposition to the Revivalists, who were a faction driven by the popular movement of Crystalism which mainly wanted a reinstitution of the old theocracy. Desperate times causes drastic changes, something that definitely happened inside the Church. The Priesthood began to rise in popularity and were considered a threat against the raigning political system, when the Circles were proving unsuccessful in decisively defeating the Lengels. Later when the Shalamari genocide and the sacking of Glass were known in the entire nation, it shifted the balance in the Revivalists' favor. First, the Republic had lost their greatest symbol - The Crystal Palace - and now they were losing their power as well.
Immediately after the war against Gerber was reconfirmed, the Revivalists made their move. Mother Kirith Sakari supposedly willingly retired from her seat, and elections were held. The more influential Revivalists won with their candidate Siri Kagari. Her first act as Mother was to call for a referendum to revert the government back to a Revived Theocracy. The Loyalists had been losing influence ever since the Gerbers had started their genocide were unable to gain any new support this late. The Pacifists were all but extinguished after the Cecil-King had been killed and mutilated, effectively declaring eternal war on the Gerber, and the last remnant sided with the stronger Revivalists in order to avoid civil war - the only thing they considered worse than the given situation.
Thus, the New Church was made out of the Old Republic (evades IggyPunch or whatever) although there were no immediate changes aside from the Priests gaining similar authority to that of the Circlemen and military officers. Since the position as Circleman was not hereditary, as well as the primary route to political influence and education was through the monastic temples, not many Circlemen were not members of the Priesthood. Thus the transition was easy, and greatly contributed towards stabilizing the country. The changes in the spiritual domain was far more revolutionary than the revival of the theocracy...