You misunderstand. Everything is prevented by law, with the purpose to make any change in production involve negotiations with the government, who then negotiates weapons/jobs/local production/... Without those negotiations, and the resulting exceptions to the law nothing can be sold, even dual use items are restricted.

And, of course, the other side of that coin: weapons export regulation is Europe is not something that is meant to actually prevent weapons export. Rather it is used like a company policy: it makes sure everyone regularly has to give the government something they want.

Which is, to put it mildly, not how politicians present those laws.