GERMANY has attempted to instil panic over securing a Brexit deal with Britain, claiming “time is running out” for London.
German government spokesman Steffen Seibert said the UK should act before a European Union (EU) summit in December which will be used to discuss Brexit.
Mr Seibert said: "This means Great Britain still has it in its own hands whether there will be enough progress so that the second phase of negotiations can be started."
The comments come a day after the European Union’s chief negotiator Michel Barnier said Brexit talks were “deadlocked” over the proposed divorce bill and that talks could not progress to discussions about a future trade deal until the issue was settled.
Asked about Britain’s future financial commitment’s to the bloc, Mr Barnier responded: “Regarding that question, we are at an impasse, which is very worrying for thousands of projects everywhere in Europe and also worrying for those who contribute.
“I am still convinced that, with political will, decisive progress is within reach in the coming two months. With David Davis, we will organise several negotiating meetings between now and the end of the year.”
Mr Seibert’s comments come after Theresa May told the EU earlier in the week the “ball is in your court” over moving the talks forward.
European Commission President Jean-Claude Juncker said in Luxembourg: "They have to pay. They have to pay."
Theresa May warned that the EU negotiators had to come back with a “constructive” response to her proposals for a future trade deal.
The Prime Minister was said to be irritated that Mr Juncker and Mr Barnier have failed to come up with a serious counter offer to the Brexit proposals she set out in her keynote speech in Florence last month.
But her spokesman said on Friday that Mrs May would have "more to say" on a promise the Prime Minister made last month to honour financial commitments when Britain leaves.
Germany's biggest industry group the BDI has advised companies active in Britain to make provisions for a "very hard Brexit" as London lacked a clear strategy.
BDI managing director Joachim Lang said: “Businesses must take precautions for the emergency case of a very hard Brexit. Everything else would be naïve.”
German Chancellor Angela Merkel said London should not expect a special deal, and that it is more important to keep the remaining 27 member states together.
Mrs Merkel told a meeting of trade unions in Lower Saxony yesterday: “These negotiations are important. We’ll conduct them.
“And we’ll conduct them in such a way that there is as little damage as possible for us here in Germany.”
Germany’s hardline stance though appears to be out-of-step with the EU as the President of the European Council Donald Tusk is poised to tell Mrs May next week that the EU will start internal work on a post-Brexit transition plan despite her failure so far to spell out exactly what London is ready to pay in a divorce settlement.