Most pilots of non-G-reg corporate ops will have only FAA papers, validated if appropriate by the registry of the aircraft e.g. IOM.
So the effects would be pretty wide in the corporate jet sector.
Pilots employed by AOC operators will have JAA papers anyway so they are unlikely to be affected.
However, the bigger operators will easily set up a "non EU resident operator" structure - if they do not have one already.
are they lobbying like mad to get this changed? There seem few actual examples being quoted.
There is probably some lobbying taking place within the EU. Manufacturers of turboprops and jets will be very concerned about this.