Could the rest of the EU simply create a new entity and leave to resolve the autocratic problem Hungary creates and letting it be the “EU” with Poland?
Could they pre-sign agreements so they come into force once they are legally out? Would such an agreement violate EU law?
I hope to find answers to this in light of the LGBTQI-persecution law that came into force yesterday.
No, this would be a huge issue because there are many many treaties, institutions and other agreements which are tied to the EU itself, which would then basically be owned and fully controlled by Hungary. The nation states leaving via Article 50 would have zero claim to those EU-owned assets, and would basically (in the case of the European Central Bank for example) be handing huge amounts of power and wealth over to Hungary.
Talk about cutting your nose off to spite your face...