Madrid is the capital of Spain and the largest city in the Iberian peninsula. It is also the third most populous city in the European Union after London and Berlin. Its effect on world history and politics, as well as its major cultural influence, has ranked Madrid one of the main global cities of the world. Madrid is also the largest city in Spain, as well as in the province and the autonomous community of the same name. It is located on the river Manzanares in the center of the country, between the autonomous communities of Castilla-León and Castilla-La Mancha. Due to its economic output, standard of living, and market size, Madrid is considered one of the major financial centers of the Iberian Peninsula, together with Barcelona (autonomous community of Catalonia's capital, also in Spain), and Lisbon (Portugal's capital). As the capital city of Spain, seat of government, and residence of the Spanish monarch, Madrid is also the political center of Spain.