Has Europe read Annex 1 to the Chicago Convention?
Unfortunately for Europe, ICAO does allow the airspace owner absolute jurisdiction over his airspace.
For example the UK CAA can stop an FAA licensed pilot flying here in FAA medicals, or even FAA licenses. And they are reported to have exercised this right, where somebody has p1ssed them off. But it is very rare.
If this was not so, none of the 200 or so countries (most of which are permanent military dictatorships, anyway) would have never signed up.
It so happens that civilised countries (Europe, generally, etc) have not exercised this right, and have allowed international aviation.
EASA is now back-pedalling on it.
Their overt position is that they want a bilateral FCL treaty with the USA. IMHO the USA will never sign such a treaty, in the current security climate. And why should they? They dish out 61.75 papers to anybody who wants them.
EASA pretends that "61.75" is beneath them; a full treaty is the only acceptable "European way".
It is however possible that EASA is trying to do a "Saddam Hussein extra mile to avoid war" job on this, i.e. they know the FAA will never go for it, so they can say "we did our best but the FAA did not play ball, so we had no choice...". These people are seasoned old foxes, as is obvious when you meet any of them.