The following are a few quotes from the Joint Declaration on the Doctrine of Justification by the Lutheran World Federation and the Catholic Church agreed upon in 1999 and subsequently adopted by the World Methodist Council as well. While it does not by any stretch put to rest the theological differences between the Catholic church and Protestantism, it does offer a new paradigm through which to view inter-church relations.
By grace alone, in faith in Christ’s saving work and not because of any merit on our part, we are accepted by God and receive the Holy Spirit, who renews our hearts while equipping and calling us to good works. (15)
Through Christ alone are we justified, when we receive this salvation in faith. (16)
Our new life is solely due to the forgiving and renewing mercy that God imparts as a gift and we receive in faith, and never can merit in any way. (17)
We confess together that all persons depend completely on the saving grace of God for their salvation. The freedom they possess in relation to persons and the things of this world is no freedom in relation to salvation, for as sinners they stand under God’s judgment and are incapable of turning by themselves to God to seek deliverance, of meriting their justification before God, or of attaining salvation by their own abilities. Justification takes place solely by God’s grace. (19)
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. (22)
When Catholics emphasize the renewal of the interior person through the reception of grace imparted as a gift to the believer, 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. (24)
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. (25)
We confess together that in baptism the Holy Spirit unites one with Christ, justifies, and truly renews the person. But the justified must all through life constantly look to God’s unconditional justifying grace. (28)
We confess together that the faithful can rely on the mercy and promises of God. In spite of their own weakness and the manifold threats to their faith, on the strength of Christ’s death and resurrection they can build on the effective promise of God’s grace in Word and Sacrament and so be sure of this grace. (34)
When Catholics affirm the “meritorious” character of good works, they wish to say that, according to the biblical witness, a reward in heaven is promised to these works. Their intention is to emphasize the responsibility of persons for their actions, not to contest the character of those works as gifts, or far less to deny that justification always remains the unmerited gift of grace. (38)