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is this bad?
This is good. Poland was “suspected” to be “breaching the EU’s founding values (respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities)”. Article 7 then strips some rights (mostly: less funding) from the nation in question.
The new government now starts to fix the violations, so Article 7 does not apply anymore.
They are restoring rule of law in Poland. So it depends, if you like PiS or not.