If this happens it would be very bad news.
There is no sub-IR instrument privilege anywhere else in Europe. Australia has one, I believe.
As the EASA process currently appears, there will not be any "reduced IR". Well, not for years and years.
So, the options will be VFR, or the full EASA IR and that is likely to be much the same as the current JAA IR.
But all this is years away anyway (c. 2010) so anything could still happen.
I like the FTN commentary
And according to those present at the recent JAA FCL 001 group meeting in Cologne, the same negative reaction by professional pilot unions would appear to have occurred again, albeit this time by unions outside of the UK.
Pilots' unions