German Chancellor Angela Merkel’s government said on Wednesday it is preparing for all Brexit scenarios, including “no deal,” Reuters reports. The cabinet also approved a draft law on a transition phase for Britain after it leaves the European Union next year. The draft law on a transition phase, the result of an EU agreement from March, will only come into force if an exit deal is reached, according to a German government spokeswoman. “If we do not get to an agreement – a scenario we don’t want – there will not be a transition phase,” said Ulrike Demmer. “To be equipped for all events, preparations for the case of a no deal must also take place,” she said. Merkel said on Wednesday that the EU needed to negotiate with Britain to ensure continued good relations.