The European Commission triggered Article 7 proceedings against Poland in December 2017 in response to concerns that the policies of the PiS government, in particular its overhaul of the judiciary, represented “a clear risk of a serious breach” of the rule of law, human rights, and press freedom in Poland.
So yes good news!
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.