nipper, I think you are missing the commercial angle. Europe is putting up a GPS system which will have the same strengths and weaknesses as the US one will (the US are upgrading capabilities so by the time the European one is in place it won't be any better).
The only explanation I can come up with is the Europeans will not allow the use of the free American system as it will then be a real bugger to get them to use the chargeable European one when it is in place. Better to ban the use until the European system is in a position to charge, then require European entities to use it. A bit cynical perhaps, but I cannot come up with any other reason that makes sense. I cannot see the US ever turning GPS off, even in Europe. Too many American people and companies use it.