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Madrid is the capital and largest city of Spain. It is the third-most populous municipality in the European Union after London and Berlin, and the fourth-most populous urban area in the European Union after Paris, London, and the Ruhr Area. 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, Endesa).
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