Business associations in Germany, Europe's largest economy, voiced disappointment and frustration over the European Union's postponed signing of a free trade deal with South American bloc Mercosur until January.

The European Commission president urged EU leaders to approve the long-awaited trade deal after it faced more pushback at the 11th hour.

Odds that the trade deal between the European Union and Mercosur will be signed in January appeared to improve slightly after a call between Brazil’s Luiz Inacio Lula da Silva and Italian Prime Minister Giorgia Meloni.

German Chancellor Friedrich Merz and Spanish Prime Minister Pedro Sanchez urged EU leaders on Thursday to back a contentious free trade pact with South American bloc Mercosur but French Prime Minister Emmanuel Macron insisted it was still not ready.

Belgium, where most of those assets are held, have been the most vocal holdout since the last EU summit in October, but officials say the country has engaged constructively in Thursday’s negotiations.