Well … I don’t think you can underestimate the threat of throwing Hungary out of the EU. But it’s also a politically risky move (there are large groups of people – maybe not majorities, but large groups – in many EU countries who do want out and any indication that that’s a realistic option politically, even if it’s throwing a member out, would provide lots of political cover for those groups), so ultimately unlikely to happen. Also, Russia would be more than happy to pick up any stragglers, and that can’t be good for anyone.
Honestly, I have no idea how the EU should deal with Hungary (or, if we generalise the problem, any member state getting an authoritarian government). I’m deeply, deeply uncomfortable with anything involving actual violence. That’s the Europe of that past and that Europe was a horrific place I never ever want to return to. The EU should be able to solve internal conflicts politically. That’s the issue here. And the EU can’t (and shouldn’t) force radical change inside countries – but it should be a vigilant watchdog for human rights. I’m just not sure exactly how to implement that in practice – but I’m certain I don’t want violence.
I live in Croatia, and it makes me uncomfortable there is a Pro-Russian and unusual regime popping up in Hungary. This thing needs to be acted upon and taken care of quickly.
I'm being somewhat facetious here, as current Hungary is far from the point where direct action against govt could or should be considered.
I'm just stressing the point that punishing the populace for the sins of the leaders is also uncool ceteris paribus.
PS: I'm Hungarian.