A top German industry official said the failure of talks between the European Union and the U.K. over a future relationship is “almost inevitable” and warned of “economic disaster.”

There are too many outstanding issues for them to be resolved in time and companies on both sides of the English Channel should “prepare for bilateral trade without an agreement under WTO rules,” Joachim Lang, managing director of Germany’s BDI industry lobby, said in a statement Friday.

“German industry does not expect the U.K. to complete the infrastructure for cross-border trade in time,” Lang added. “Companies face the threat of new tariffs, additional bureaucracy and an economic disaster.”

The remarks add to growing pessimism in Europe’s largest economy that a deal can be reached by the end of the year. A deputy German foreign minister, Michael Roth, this month accused the U.K. of failing to live up to commitments it made in last year’s Brexit accord.

Michel Barnier, the EU’s chief negotiator, said this week that “big differences” remain between the two sides after talks in London—and that a deal is “unlikely” if the British government doesn’t back away from its red lines.

Officials gave a softer impression in private, however, signaling some progress toward agreement in key areas.

But Lang, whose organization represents around 100,000 businesses that employ some 8 million workers, echoed comments by Roth about what he suggested is U.K. negotiators’ backsliding.

“London has repeatedly deviated from the political declaration on key issues, such as future competition regulations,” the BDI chief said. “It’s imperative for the German government and the EU to join forces and give full focus to the necessary emergency measures.”