Complex sentence: Sweden issues National Identity Cards, but its Passport Law does not allow a Swedish citizen to travel outside the Schengen Area without a passport, which is in violation of EU freedom of movement.
Split into simpler sentences: Sweden issues National Identity Cards which only allow travelling to and staying in the Schengen Area without a passport. Travelling to EU countries outside the Schengen Area is not allowed, which is in violation of EU rules on freedom of movement.