CE itself is the least of the issues, and is indeed relatively low-cost for mass-market consumer goods, (this is not true for niche products,) when it is taken into account in the original product design.

From my perspective (as a non-resident EU citizen), it seems the EU is addicted to cheap products from PRoC which do not comply with a variety of EU regulations, because actually enforcing compliance would drive up consumer prices, which is politically unacceptable. This also seems like the reason of the lackadaisical enforcement of regulations.

Essentially, allowing in PRoC products, then complaining is an easy way to keep prices low while continuing to introduce regulations which are expensive to comply with.

Put another way: why does the EU manufacture a declining share of its consumer products, at a time when automation makes mass-production less labor dependent than ever for many industries.