Comments by European Commission spokesman Schinas in Brussels
Talks between the two appear to have come to a stand still with the EU this week heavily focused on the migration issue and getting Merkel's coalition government past the finish line.
An earlier draft conclusion of the EU Summit said that European leaders are to ask for "more realistic and workable proposals" from the UK on its relationship with the EU after Brexit. And that they would leave the door open for the UK to change its 'red lines' in Brexit negotiations.
In short, it's pretty much a case of "come back and let's talk again in October".