I assume that this means there is nothing to stop an N (or other third country) registered aircraft from staying and operating continually in Europe. Am I correct?
Yes.
Do you have a reference source please?
Everything not prohibited is 100% legal.
There is no reference.
You can read the link(s) I posted - the applicable EASA regs are perhaps 2000 pages, and
AFAIK there is no mention of any long term parking ban.
For better or worse, EU law is EU law.
That said, nothing stops isolated cases of localised harrassment, like I mentioned earlier. They happen today and it cannot be guaranteed that they will cease altogether. Countries like France, Italy, etc, can do what they like (again, for better or for worse).
After all, with EASA being unable to distinguish safety from politics as well as communicating different things to different people, anything can happen.
That's true as well