Flying N-registered Aircraft in the EU (as an EU resident)

Question

Until recently, I believed what the old, wise men of my local flying club had been telling me for years:

You can fly N-registered aircraft in Europe... as long as you have an FAA license.

I recently tried to research the relevant section of EU law, just to be sure. As it turns out, matters are (much?) more complicated. So far, I was able to determine:

Flying an N-reg. Acft. in...	while being a resident of...	license requirement	comment
EU member state	EU member state	FAA + EASA (since 2021)	claimed by [1] and [2], but why?
EU member state	non-EU member state	FAA	claimed by [1] and [2], but why?
US	US	FAA	Title 14
US	non-US	FAA	Title 14

(I am referring to EASA Part-FCL member state pilot's licenses as "EASA licenses" in the following)

What I understand:

The 2020 (in force 2021) BASA bilateral treaty between the EU and the US makes it easier to obtain a "standalone" EASA license based on an FAA license (and vice-versa). This is sometimes known as the TIP-L process (from "Technical Implementation Procedures - Licensing").

Various sources, including regional AOPA offices [1] and the European Commission [2] state that this regulation now compels EU residents to have both an FAA license and an EASA license to fly N-registered aircraft in the EU. From the regulation alone, I do not see why this is the case.

Also, Article 33 "Recognition of certificates and licenses" of the Chicago convention states:

Certificates of airworthiness and certificates of competency and licenses issued or rendered valid by the contracting State in which the aircraft is registered, shall be recognized as valid by the other contracting States, provided that the requirements under which such certificates or licenses were issued or rendered valid are equal to or above the minimum standards which may be established from time to time pursuant to this Convention.

My questions are therefore:

1. Where, in EU law, does it state that an EU resident must hold a valid FAA license and a valid EASA license to fly an N-registered airplane?
2. Where, in EU law, does it state that a non-EU resident must hold "only" a valid FAA license to fly an N-registered airplane?
   (Is this simply Article 33 of the Chicago convention? If so, I am guessing that this is regulated at the national level, since individual countries are signatories to the Convention, not the EU?)
3. Where, in EU law, are those countries listed to which Article 33 of the Chicago Convention applies (ie. those countries whose licenses are recognized)?
   (Is this related to Commission Delegated Regulation (EU) 2020/723, which now amends the EASA Easy Access Rules for Aircrew?)

[1] AOPA Luxembour blog post
[2] Archived summary by the European Commission

Answer 1

After a significant amount of further research, I finally found a post by policy expert Jyrki Paajanen of DG MOVE (EU Directorate for Transport) in the EASA Community Forum:

The EASA Basic Regulation Section I, Article 2(1)(b)(ii) determines that the operation of aircraft is subject to the Basic Regulation, if they are “registered in a third country and operated by an aircraft operator established, residing or with a principal place of business in the territory to which the Treaties apply”. This means also holding a Part-FCL licence to fly a third-country registered aircraft.

EASA Basic Regulation Section II, Article 21 further states:

Pilots shall be required to hold a pilot licence and a pilot medical certificate appropriate to the operation to be performed (...)

Which of course implies that an EASA member-state license is required.

This explains that EASA Basic Regulation always required aircraft operators (=pilots) with EU-residence to hold a valid EASA member-state license. Ok, but where did it previously say that this requirement could be derogated by member states?

To find this out, further research was required. Fortunately, I found a notice published by the Irish Aviation Authority:

Since the introduction of Commission Regulation (EU) No 1178/2011 of 3 November 2011 as regards technical requirements and administrative procedures related to civil aviation aircrew, Ireland has availed of available derogations relating to pilots holding a licence and associated medical certificate issued by a third country involved in the non-commercial operation of aircraft as specified in Article 2(1)(b), points (i) or (ii), of Regulation (EU) 2018/1139.

The last available derogation, Article 12 – 4 of Regulation (EU) No. 1178/2011 as amended by article 1(1) of Regulation (EU) No. 2020/2193 ceases on 20 June 2022. The EU has not indicated that further derogations will be forthcoming.

Does this not run counter to the Chicago Convention? To the legal layperson, it would seem so. The AOPA Luxembourg blog post seems to suggest that the EU is still technically in breach of the Convention, although now to a "lesser degree" 🇪🇺🙄:

European countries and EASA [note: prior to signing the BASA bilateral treaty between the EU and the US] were not abiding to the terms they had accepted on licensing when becoming members of ICAO. (USA would accept private licenses coming from other ICAO member countries, but European countries did not reciprocate), therefore these countries were in breach of the international treaties they had signed.

And indeed, in the US, it seems to be enough to have a license of the state in which the aircraft is registered, as per 14 CFR 61.3(b), irregardless of the seat of residence of the pilot (see also this answer on the Aviation StackExchange).

For completeness, I am including the relevant sections of two AOPA blog posts which mentioned the new requirement to have both an EASA license and an FAA license. I am somewhat surprised that they did not quote the relevant part of EU air law - but perhaps it's just as well...

(...) flying an N-aircraft will always require an EU license in addition to the FAA certificate if you are an EU resident.
IAOPA Europe

Residents of the European Union, by the terms they accepted to gain the right to residency or by the fact that a national citizen has the obligation to abide by the laws of his country, have the obligation to follows the laws relevant to their residency location. So, in addition to the licenses and qualifications necessary to conform to the laws and rules of the country of registration of their aircraft, pilots shall also carry the same licenses and qualifications from the region where they elected to reside (...)
AOPA Luxembourg