Final answer:
The Economic and Monetary Union provision of the Maastricht Treaty established the parameters for the EU's common currency, the euro, which was introduced in the early 2000s to enhance economic integration among member states.
Step-by-step explanation:
The provision that established the parameters for the creation of a common currency for the European Union is the Economic and Monetary Union provision of the Maastricht Treaty. After World War II, European nations sought to integrate their economies to avoid future conflicts and foster economic recovery. This led to the formation of the European Union (EU), which began as a free trade association and evolved into a common market, eventually transforming into a full economic union.
In the early 2000s, the EU introduced the euro as a common currency for Europe and phased out most of the former national forms of money like the German mark and the French franc. This was a crucial step in the economic integration of the EU member states, although some countries chose to retain their own currencies. The establishment of the euro aimed to eliminate barriers to the mobility of goods, labor, and capital across Europe.
The Maastricht Treaty not only facilitated the adoption of the euro but also laid the foundation for common security and foreign policies among the EU member states, thereby reinforcing the cohesion of the union.