However, I just read in the sports section of the Los Angeles Times that Madrid's chances may be in jeapordy, due to the racial incidences that have been plaguing soccer games in Spain.
Here the UK, with a general election coming up, one of the main political parties has been trying to stir up anti-foreigner and anti-immigrant feelings (coming straight after a debate over binge-drinking and hooligan behaviour, where no-one mentioned this is white British behaviour). This will not help the London campaign one bit, so maybe Paris has to be seen as the favourite. Funnily enough the man responsible Michael Howard (leader of the Conservative party) is believed to be here because his grandfather was an illegal immigrant fleeing persecution in the 30s.
I personally am not too much in favour of the Olympics coming to Madrid. Firstly because the summer temperatures there make it uncomfortable both for athletes and spectators. Secondly (and perhaps more importantly) because it would increase the risk of more terrorists targeting Madrid. In a way this is letting the terrorists win, but people's lives are more important than a prestige event. Having said all this I think the transport system and lower cost of living make it a far better venue than London could hope to be.