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The XQueryX 3.0 Working Draft published on 2010-12-14 does not support EQNames. This should be corrected before publication of any future Working Draft.
I have added support for EQName in both the XQueryX schema and the XQueryX stylesheet. I concurrently added support for atomicOrUnionType, but I did not change the name of the XQueryX element (atomicType) for reasons of compatibility with XQueryX 1.0.