German Chancellor Angela Merkel (front) arrives at the European Council in Brussels, Belgium, Oct. 17, 2018. The current status of the Brexit negotiations will be the key issue at the EU summit on Wednesday evening. British Prime Minister Theresa May is expected to explain to heads of state of the 27 EU members how she envisages a solution to the remaining questions regarding Brexit. (Xinhua/Zheng Huansong)

German Chancellor Angela Merkel said on Wednesday that she wants Britain to remain a close and trustworthy partner of the EU, even after leaving.

The words of the chancellor came in a government statement on the EU summit which will later take place on Wednesday night.

Merkel stated that both sides moved closer to each other and the intention was to "put future relations on a new basis."

According to Merkel, 90 percent of the agreement had been reached so far. However, she emphasized that the German government is preparing for all possible scenarios of Brexit, including a so-called hard Brexit without any agreement at all.

A major point of contention was the issue of how the border between Ireland and Northern Ireland should be regulated, Merkel stated. One of the EU's main conditions for a withdrawal agreement is the prevention of border controls between the British territory of Northern Ireland and the EU member Ireland.

"Everything is currently looking at the Ireland issue, but despite the political spectacle, solutions are now emerging in this regard," Juergen Matthes, head of the Research Unit International Economics and Economic Outlook at the German Economic Institute (IW) told Xinhua on Wednesday.

"More importantly, the withdrawal agreement should not slam the door on a free trade area for goods as proposed by the British government. If the British government makes sufficient concessions here, also in terms of immigration and EU contributions to cohesion policy, the EU should be able to accept this proposal," explained Matthes.

The current status of the Brexit negotiations will be the key issue at the EU summit on Wednesday evening. British Prime Minister Theresa May is expected to explain to heads of state of the 27 EU members how she envisages a solution to the remaining questions regarding Brexit.