DFC - very close!!
ICAO legislation says that every member state of ICAO must recognise PPL priveges from any other ICAO member state.
So, for example, the Brits recognise the FAA PPL, the Dutch recognise a Brit...etc. etc.
Technically , you must fly the host nations registration, VFR only, and only within their geographical borders...so, a G reg flown in UK, an F reg flown in France, a PH reg flown in Holland.
Some states (or, maybe, some individual customs/immigration guys at the airports of some states) don't mind you flying across their borders - i.e. Britain to France - but that's not the real deal.
The JAA "compliant" licence is a play on words from that International legislation.
The schools do issue FAA PPL's (with no training or advice on European operations what-so-ever) - which are then - under the International agreement - recognised for VFR flight within your 'home' nation).