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EU prefers trade deal with Britain but prepared either way, says Merkel

Bundestag session in Berlin

BERLIN (Reuters) - The European Union would prefer to agree a trade deal with Britain but is prepared for all scenarios, German Chancellor Angela Merkel said on Wednesday.

"There has been progress but no breakthrough," Merkel told the Bundestag lower house of parliament, adding that talks between Britain and the European Commission would continue until the end of the week.

(Reporting by Paul Carrel and Michael Nienaber; Writing by Madeline Chambers)