Brexit: Merkel says both sides need to compromise

German Chancellor Angela Merkel on Thursday said "satisfactory movement" had been made towards a Brexit trade deal between the EU and the UK but "a lot of work still needs to be done". Merkel spoke to the media at the end of the first day of a summit of EU heads of state in Brussels.

It came on the day British Prime Minister Boris Johnson had set as a potential cutoff point for the acrimonious negotiations. Merkel, the veteran diplomat, admitted the two sides had their own "red lines" but said the EU should be willing to compromise if the UK does same.

She reiterated the protection of the single market and continued peace in Ireland were of vital importance to the bloc. Britain has already left the EU, but Brussels and London need to agree on what their future relationship will be once a transition period ends on January 1.