It would be enacted where fellow members identify another member as persistently 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), as outlined in TEU Article 2.
Before making such a determination, the Council shall hear the Member State in question and may address recommendations to it, acting in accordance with the same procedure.
The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken under paragraph 3 in response to changes in the situation which led to their being imposed.
These values are common to the Member States in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail.
With concerns over the EU's ability to intervene where its core principles and values were violated, there was a desire to introduce some mechanism before enlargement to those states took place.
[5][6] The Treaty of Nice provided this (in Article 7.1) whereby the Council, acting by majority, may identify a potential breach and make recommendations to the state to rectify it before action is taken against it as outlined above.
[7] Article 7.1: The mechanism begins with a proposal to find a "Clear Risk of Serious Breach" of EU values either by the Commission, the Parliament or one-third of member states.
Events for which activation of Article 7 was debated include the aforementioned Austrian coalition with the far right in 2000, the French government expulsion of thousands of Roma in 2009 and a political struggle in Romania between Traian Băsescu and Victor Ponta in 2012.
[10][11] UK Conservative MEPs supported the right wing Hungarian leader, Viktor Orbán, against a motion to censure him in the European Parliament.
[12] Pablo Casado, leader of Spain's People's Party directly ordered the PP members of the European Parliament to abstain in the voting of the Sargentini report calling for triggering Article 7 proceedings against the Hungarian government of Viktor Orbán.
[13] On 30 March 2020, in response to the coronavirus pandemic, the Hungarian Parliament approved a bill to make the state of emergency indefinite and grant the ability for Prime Minister Orbán to rule by decree.
[14] The bill also makes the deliberate distribution of "misleading information that obstructs responses to the pandemic" punishable by up to five years in prison.
"After two years, the Commission can only conclude that there is now a clear risk of a serious breach of the rule of law," Vice President Frans Timmermans added.