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Picturesque Colmar in France, considered the most beautiful city in Europe, looks like it came straight out of a fairy tale. This tiny town in Alsace is famous not only for its magically colourful old town. Colmar, situated along the Alsatian Wine Route, is called the "Capital of Alsatian Wine" - it boasts a sunny microclimate and is the second driest city in France, making it ideal for wine growing.