Merkel made the comments to reporters arriving in Brussels
The comment sounds like a big thumbs-down but she's upbeat and wants to move forward.
"There has been progress. Michael Barnier will report on this. At this point, it's not yet sufficient to begin the second phase, but it's encouraging enough to continue working in order to reach the beginning of the second phase in December," she said. "I want to continue these negotiations in a positive spirit."