ABSTRACT This article offers an explanation for why the Article 7 (1) procedures, the so-called preventive mechanism, triggered against Poland and Hungary over breaches of the European Union’s fundamental values have not made any progress and have come to a standstill. Drawing on the incomplete contracting approach, it is argued that the Council, which is charged with carrying out the procedures, has been able to water these procedures down by filling the incomplete provision of Article 7 (1) with its own procedural rules. The ‘offender-friendly’ rules established by the Council have enabled it to control and delay the processes. Moreover, it is argued that these rules were essential for the Council to solve its ‘Article 7 dilemma’. The findings highlight that the effectiveness of the alleged ‘nuclear option’ is highly dependent on the Council’s procedural rules.