This hand could go a number of different ways.

1.

West passes.

North with a poor hand (not helped by K♦ singleton) but 7♣ s only with J high could open 3♣ . Position 2 pre-empts should be more serious as your side is statistically more likely to have the balance of HCPs. BUT it is aggressive and make it difficult for the opponents, but also your partner.

East can and probably should overcall 3♥ 

South should probably pass.

With only 7 HCPs (counting the Q♣ singleton) West should pass, but many may support partner who could have enough for game. 

North as a pre-empter should not bid again.

2. After 2 passes East opens 1NT

A good 13HCPs and balanced 1NT is the standard bid, some might bid 1♥ with the aim of rebidding ♥ d, but this would be wrong as it shows an unbalanced hand.

Here is Andrew Robson on Opening with a 5 card major

South may bid 2♦ (natural if that is your system), 2♦ (showing ♦ and a major) or pass (the worst)

If South passes West has a 2♣ Stayman bid, including passing any response including 2♦  if partner does not have a major. Here partner can bid 2♥

.North may bid 3♣ over the 2♦ which will give East then a choice of bidding 3♥ or passing. If East passes West may double to show support for the other suits. Which East will bid 3♥ .