The paper presents the results of investigation of variability of net photosynthesis (A), transpiration (E), stomatal conductance (gs) and water use efficiency (WUE) of three European beech (Fagus sylvatica L.) provenances in the provenance trial established on Fruska Gora Mt. Provenances originate from three localities along a gradient from the north to the south of Europe: Pfalzgrafenweiler (Germany), Grenchen (Swiss) and Valkonya (Hungary). Results indicate that observed parameters were influenced both by environmental conditions of sites and genetic constitution of provenances. On the basis of ANOVA procedure it was observed significant differences among provenances in terms of rate of transpiration (p_0.037) and water use efficiency (p_0.011), while differences regarding net photosynthesis and stomatal conductance were not statistically significant. Canonical discriminant analysis (CDA) was performed in order to estimate multivariate relations among analyzed physiological parameters. Provenances were separated by the first canonical axis (CD1), which described 96.4% of variability. Provenance from the driest site (Valkonya) showed the highest water use efficiency, indicating on high potential for afforestation programmes in more arid areas.