The German chancellor was speaking as leaders gathered in Brussels for a crunch summit where they will assess the progress made so far.

Theresa May has called for "urgency" from the EU in settling the issue of citizens' rights after Brexit.

The UK wants the negotiations' agenda to move on to a future trade deal.

But this requires approval from the EU 27 leaders that enough progress has been made in the first phase.

Ms Merkel said the progress so far was "not sufficient to enter the second phase", adding: "But it is encouraging. We will continue the talks with a view to reaching the second phase in December."

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