Madrid, Spain

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Palcio de Villahermosa since 1993, Madird has enhanced its reputation as one of the cultural centers of Europe and was nominated "European City of Culture" in 1992.

Economic Metropolis

Madrid was late in becoming the economic and financial center of Spain. Today more than 15% of Spanish industrial goods are produced in the Madrid region including trucks (Pegaso), tractors, electrical goods (Zanussi, Marconi, AEG. Siemens), cosmetics and textiles. 70% of the multinational firms operating in Spain are located in Madrid, over half the country's research institutes with 5,000 scientists, and leading high-tech concerns are represented here. In addition, 80% of Spanish publishing companies are located in Madrid together with the State Bank (Banco de España) and three of the five major private banks - Banco Central, Banco Hispanoamericano and Banco de Crédito. Barcelona. Bilbao and Madrid dominate the Spanish stock exchange. This continually expanding metropolis is one of the most important centers of commerce, residential building and tourism.

The housing market

Madrid's rise from a provincial administrative center to an international metropolis has had catastrophic effects on the housing market. A tremendous property boom drove housing prices sky-high, and in the suburban districts round the city, prices even doubled. Property prices have leveled off creating a more favorable housing market. Madrid still remains one of the most expensive sreas in Spain along with Barcelona and Vizcaya. There are corresponding divergences in income patterns: the average household income in the northwestern districts is five times the figure for the districts to the south.

Traffic chaos.

Madrid's position in the middle of the country means that all the major roads meet at the Puerta del Sol. Even though the long distance roads bypass the city and are of highway standard and much of the heavy traffic is diverted onto the ring road highways (M30 and M40) the city is choked up with traffic as almost every third person in Madrid owns a car. The townplanners need to develop a traffic strategy which puts an end to the right to drive a car in the city but so far there are no integrated tickets for public transport and the construction of the much heralded express rail link to Barajas airport is no closer.

History

In the 10th century the site of the present Royal Palace was occupied by the little Moorish town and fortress of Majrit, which was captured by King Alfonso VI in 1103. In 1239 Ferdinand IV summoned the first Cortes to meet "Madrit", which thereafter became a frequent residence of the king. It was only in the time of the Emperor Charles V, however, that the old Alczázar was converted into a palace. In 1561 Philip II finally moved the court from Toledo to Madrid, which then had a population of some 30,000. This was the period that saw a great flowering of Spanish literature and art: Cervantes wrote the second part of "Don Quixote" in Madrid, while Lope de Vega, Velázquez and Calderón lived for varying periods in the new capital. In the 18th Century, under the Bourbons, the present Palacio Real was built to replace the older palace which had been destroyed by fire. In the early 19th century the French occupying forces demolished many convents and whole districts of the city in order to open up the crowded old town. The rising of the people of Madrid against the French on May 2, 1808 was the signal for further risings throughout the country. Madrid's development into a modern city began towards the end of the 19th century. On April 14, 1931 the Republic was proclaimed in Madrid. During the Civil War the city underwent a grim siege by Franco's forces, beginning with a two week battle in November, 1936, mainly around the University City; but in spite of heavy bombardment by German and Italian aircraft, Madrid held out until March 28, 1939.

Madrid is a lively metropolis and popular cultural destination with an ideal climate of warm dry summers and cool winters. Many of the historic neighbourhoods and streets have been preserved as well as such landmarks as the Royal Palace of Madrid, the Teatro Real, the National library building and the renovated Villahermosa Palace.

The Golden Triangle of Art is a major tourist destination consisting of the Prado Museum, Museo Thyssen-Bornemisza and Reina Sofia Museum.