Maybe I am misunderstanding, so please spell it out if I am.
I can understand the limitation on aircraft registration for those used in commercial ops, but privately owned/operated units doesn't make sense to me.
Further, even if you had to re-register the aircraft, under current ICAO (incl CAA) regs, FAA licenses (PPL at least) as ICAO member states are recognised by CAA and allow you to fly G-Reg in the UK with your FAA PPL. In fact DGAC will allow you to fly G-reg in France (with FAA PPL) as long as it is not a commercial flight or under IMC (I have the letter laminated in my flightbag and onboard the ac
)
Is this restricted to CPL/ATPL ops or all including PPL?..effectively they will be saying that ICAO licenses are worthless unless they are European issued.
'They' go through cycles of this, then realise it is too much effort and give up. I hope that is true in this case, else I will have to draw a line under aviation and return to paying my mortgage.