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22. We confess together that God forgives sin by grace and at the same time frees human beings from sin's enslaving power and imparts the gift of new life in Christ. When persons come by faith to share in Christ, God no longer imputes to them their sin and through the Holy Spirit effects in them an active love. These two aspects of God's gracious action are not to be separated, for persons are by faith united with Christ, who in his person is our righteousness (1 Cor 1:30): both the forgiveness of sin and the saving presence of God himself. Because Catholics and Lutherans confess this together, it is true to say that:
23. When Lutherans emphasize that the righteousness of Christ is our righteousness, their intention is above all to insist that the sinner is granted righteousness before God in Christ through the declaration of forgiveness and that only in union with Christ is one's life renewed. When they stress that God's grace is forgiving love ("the favor of God"(12)), they do not thereby deny the renewal of the Christian's life. They intend rather to express that justification remains free from human cooperation and is not dependent on the life-renewing effects of grace in human beings.
24. When Catholics emphasize the renewal of the interior person through the reception of grace imparted as a gift to the believer,(13) they wish to insist that God's forgiving grace always brings with it a gift of new life, which in the Holy Spirit becomes effective in active love. They do not thereby deny that God's gift of grace in justification remains independent of human cooperation. [cf. Sources for section 4.2].
Section 4.3 JUSTIFICATION BY FAITH AND THROUGH GRACE
25. We confess together that sinners are justified by faith in the saving action of God in Christ. By the action of the Holy Spirit in baptism, they are granted the gift of salvation, which lays the basis for the whole Christian life. They place their trust in God's gracious promise by justifying faith, which includes hope in God and love for him. Such a faith is active in love and thus the Christian cannot and should not remain without works. But whatever in the justified precedes or follows the free gift of faith is neither the basis of justification nor merits it.
26. According to Lutheran understanding, God justifies sinners in faith alone (sola fide). In faith they place their trust wholly in their Creator and Redeemer and thus live in communion with him. God himself effects faith as he brings forth such trust by his creative word. Because God's act is a new creation, it affects all dimensions of the person and leads to a life in hope and love. In the doctrine of "justification by faith alone," a distinction but not a separation is made between justification itself and the renewal of one's way of life that necessarily follows from justification and without which faith does not exist. Thereby the basis is indicated from which the renewal of life proceeds, for it comes forth from the love of God imparted to the person in justification. Justification and renewal are joined in Christ, who is present in faith.
27. The Catholic understanding also sees faith as fundamental in justification. For without faith, no justification can take place. Persons are justified through baptism as hearers of the word and believers in it. The justification of sinners is forgiveness of sins and being made righteous by justifying grace, which makes us children of God. In justification the righteous receive from Christ faith, hope, and love and are thereby taken into communion with him.(14) This new personal relation to God is grounded totally on God's graciousness and remains constantly dependent on the salvific and creative working of this gracious God, who remains true to himself, so that one can rely upon him. Thus justifying grace never becomes a human possession to which one could appeal over against God. While Catholic teaching emphasizes the renewal of life by justifying grace, this renewal in faith, hope, and love is always dependent on God's unfathomable grace and contributes nothing to justification about which one could boast before God (Rom 3:27). [See Sources for section 4.3].
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