Most businesses in Italy, including bars and hairdressers, are reopening after more than two months of nationwide lockdown measures.
Spain meanwhile has slightly eased restrictions on some of its least affected islands.
The measures follow consistent drops in the number of daily recorded deaths.
On Sunday, Italy recorded the fewest daily deaths since it entered lockdown in March.
It said 145 people had died with the virus in the previous 24 hours. This marked a significant drop from its highest daily death toll, which was more than 900 on 27 March.
In Spain, the daily death toll fell below 100 for the first time since it imposed its lockdown restrictions.
But officials are warning that complacency over the virus could lead to a second wave of infections.
Restaurants, bars, cafes,
hairdressers and shops have been allowed to reopen in Italy, providing social
distancing is enforced.
Almost 32,000 people in Italy have
died in the pandemic, and the economy is expected to shrink by nearly 10% this
year.
Catholic churches are resuming Mass,
but there is strict social distancing and worshippers must wear face masks.
Other faiths are also being allowed to hold religious services.
But health officials have warned of
the continued dangers of large social gatherings.
Pope Francis held a private Mass at
St Peter's Basilica in the Vatican, which has been disinfected ahead of its
reopening to tourists.
The Mass honoured the late Pope John
Paul II, 100 years after his birth in Poland.
In Spain, some areas are also seeing
restrictions ease.The country has a four-phase system for reopening, which authorities are applying at different speeds in different regions.
Most of Spain moved into phase one last week. Up to 10 people are allowed to meet together, provided they wear masks and socially distance, while bars and restaurants can open outdoor seating at half capacity. Cinemas, museums and theatres are also opening at reduced capacity.
Some Spanish islands that have not been badly affected by the outbreak moved into phase two on Monday - allowing shopping malls to reopen and gatherings of up to 15 people.
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