Claim: Spain is part of Europe.

Madrid -LRB- -LSB- məˈdrɪd -RSB- , -LSB- maˈðɾið -RSB- , -LSB- maˈðɾi -RSB- -RRB- is the capital city of the Kingdom of Spain and the largest municipality in both the Community of Madrid and Spain as a whole . The city has a population of almost 3.2 million with a metropolitan area population of approximately 6.5 million . It is the third-largest city in the European Union -LRB- EU -RRB- after London and Berlin , and its metropolitan area is the third-largest in the EU after those of London and Paris . The municipality itself covers an area of 604.3 km ² .   Madrid lies on the River Manzanares in the centre of both the country and the Community of Madrid -LRB- which comprises the city of Madrid , its conurbation and extended suburbs and villages -RRB- ; this community is bordered by the autonomous communities of Castile and León and Castile-La Mancha . As the capital city of Spain , seat of government , and residence of the Spanish monarch , Madrid is also the political , economic and cultural centre of the country . The current mayor is Manuela Carmena from Ahora Madrid .   The Madrid urban agglomeration has the third-largest GDP in the European Union and its influences in politics , education , entertainment , environment , media , fashion , science , culture , and the arts all contribute to its status as one of the world 's major global cities . Madrid is home to two world-famous football clubs , Real Madrid and Atlético de Madrid . Due to its economic output , high standard of living , and market size , Madrid is considered the major financial centre of Southern Europe and the Iberian Peninsula ; it hosts the head offices of the vast majority of major Spanish companies , such as Telefónica , Iberia , and Repsol . Madrid is the 17th most liveable city in the world according to Monocle magazine , in its 2014 index .   Madrid houses the headquarters of the World Tourism Organization -LRB- UNWTO -RRB- , belonging to the United Nations Organization -LRB- UN -RRB- , the Ibero-American General Secretariat -LRB- SEGIB -RRB- , the Organization of Ibero-American States -LRB- OEI -RRB- , and the Public Interest Oversight Board -LRB- PIOB -RRB- . It also hosts major international regulators and promoters of the Spanish language : the Standing Committee of the Association of Spanish Language Academies , headquarters of the Royal Spanish Academy -LRB- RAE -RRB- , the Cervantes Institute and the Foundation of Urgent Spanish -LRB- Fundéu BBVA -RRB- . Madrid organises fairs such as FITUR , ARCO , SIMO TCI and the Cibeles Madrid Fashion Week .   While Madrid possesses modern infrastructure , it has preserved the look and feel of many of its historic neighbourhoods and streets . Its landmarks include the Royal Palace of Madrid ; the Royal Theatre with its restored 1850 Opera House ; the Buen Retiro Park , founded in 1631 ; the 19th-century National Library building -LRB- founded in 1712 -RRB- containing some of Spain 's historical archives ; a large number of national museums , and the Golden Triangle of Art , located along the Paseo del Prado and comprising three art museums : Prado Museum , the Reina Sofía Museum , a museum of modern art , and the Thyssen-Bornemisza Museum , which completes the shortcomings of the other two museums . Cibeles Palace and Fountain have become one of the monument symbols of the city .