My current understanding:
If a PCT application was filed before, but published after, the filing of a different European patent application, then the PCT application may be considered a 54(3) EPC document (i.e. Only novelty destroying prior art), ONLY IF the PCT enters the European phase (fees paid and translations provided) within 31 months.
Could the EP application be allowed to grant if the PCT application has not yet entered the European phase (i.e. is currently not a 54(3) document but could become one in the future), but would appear to be novelty destroying?
Also if such a case arose, what would be the smartest course of action for the inventor of the EP application?