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We currently say about the only argument of fn:system-property (20.3.4 fn:system-property) that: <quote> The $property-name argument must evaluate to a lexical QName. </quote> Since every other function we have that used to accept QNames now also accepts EQNames, I think this was possibly an oversight and should now (also) allow EQNames as an argument. See also Michael Kay's suggested conversion function which appears to assume this: https://lists.w3.org/Archives/Member/w3c-xsl-wg/2015Sep/0010.html (members only).
Anticipating the WG's agreement to remove this obvious inconsistency, I have applied the change to the spec but leave the bug open for review. The replacement text reads: <p diff="chg" at="S-bug29113">The value of the <code>$property-name</code> argument <rfc2119>must</rfc2119> be a string containing an <termref def="dt-eqname">EQName</termref>. If it is a <termref def="dt-lexical-qname">lexical QName</termref> with a prefix, then it is expanded into an <termref def="dt-expanded-qname">expanded QName</termref> using the namespace declarations in the static context of the <termref def="dt-expression">expression</termref>. If there is no prefix, the name is taken as being in no namespace.</p>
The change was accepted.