The subject is still Christian liberty and freedom from the law, which the believer enjoys in Christ. Only this state of liberty is able to produce true sanctification.
Paul does not mean that this battle between the two natures is only experienced while we are not led by the Spirit, and that as soon as we yield to the Spirit’s control the problem is solved, the battle is removed from us, and we are completely successful. No, the battle continues regardless and our walking in the Spirit does not sidestep the fight against sin, but allows us to be victorious in that fight; indeed our being led by the Spirit is our victory over sin. Although it will be true to the very last day of our lives that the flesh lusts against the Spirit and the Spirit against the flesh, yet we may be progressively sanctified and we may subdue the flesh more and more as we are careful to pay attention to the leading of the Spirit who continually prompts us to walk according to the word of God. By doing so, we continue to advance, and to take possession of territory previously occupied by the flesh.
The leading of the Spirit is not simply like following a guide who goes ahead and leaves us to follow in our own strength. The Spirit not only shows us the way to go, but strengthens and encourages us to walk in that way. It is not hard for those who already have the Spirit to yield to the leading of the Spirit, to obey God’s Word, to yield to conscience when it speaks. Sanctification is progressive and not instantaneous, and therefore we must be prepared in our hearts for a lifelong battle with temptation, and not cease striving until God removes us from this world at which point we will have the body of sin taken away and be transformed perfectly into the image of Christ. Not every believer is advancing in the way; some fall into temptation and backslide, however we should reckon that progress in sanctification is the normal experience of believers.
As justified people, we no longer fall under the condemnation of the law every time we break God’s commandment. God disciplines his children and corrects their sinful ways, but he does not change his mind about their justified and adopted status; he expects them to come as children daily confessing their sins. Calvin says, ‘The performance of their duties is not rejected on account of their present defects, but is accepted in the sight of God, as if it had been in every respect perfect and complete.’