Madrid in Spanish, and colloquially in Spain is the capital and largest city of Spain. It is the third-most populous municipality in the European Union after Greater London and Berlin, and its metropolitan area is the fourth-most populous urban area in the European Union after Paris, London, and the Ruhr Area.
The city is located on the river Manzanares in the centre of both the country and the Community of Madrid (which comprises the city of Madrid, its conurbation and extended suburbs and villages); 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 center of Spain. The current mayor is Alberto Ruiz-Gallardón from the center-right People's Party. He has been in office since 2003, when he left the Presidency of the Autonomous Community of Madrid and stood as the candidate to replace outgoing mayor José María Álvarez del Manzano, also from the PP. In the last local elections of 2007, Ruiz-Gallardón increased the PP majority in the City Council to 34 seats out of 57, taking 55.5% of the popular vote and winning in all but two districts.
Due to its economic output, standard of living, and market size, Madrid is considered the major financial center of the Iberian Peninsula; it hosts the head offices of the vast majority of the major Spanish companies, as well as the headquarters of three of the world's 100 largest companies (Telefónica, Repsol-YPF, Banco Santander).