<xsl:template match="ARE">
  <xsl:param name="x" select="''"/>
  <xsl:apply-templates select="following-sibling::*[1]">
    <xsl:with-param name="x" select="anything-passed-to-template-YOU"/>
  </xsl:apply-templates>
</xsl:template>

<xsl:template match="YOU">
  <xsl:param name="x" select="''"/>
  <xsl:apply-templates select="following-sibling::*[1]">
    <xsl:with-param name="x" select="anything-passed-to-template-NUTS"/>
  </xsl:apply-templates>
</xsl:template>

<xsl:template match="NUTS">
  <xsl:param name="x" select="''"/>
</xsl:template>

<xsl:template match="ARE">
  <xsl:param name="x" select="''"/>
  <xsl:apply-templates>
    <xsl:with-param name="x" select="anything-passed-to-template-YOU"/>
  </xsl:apply-templates>
</xsl:template>

<xsl:template match="YOU">
  <xsl:param name="x" select="''"/>
  <xsl:apply-templates>
    <xsl:with-param name="x" select="anything-passed-to-template-NUTS"/>
  </xsl:apply-templates>
</xsl:template>

<xsl:template match="NUTS">
  <xsl:param name="x" select="''"/>
</xsl:template>

Is it possible to pass a parameter from one matched template to another?

That is, with the following:

<xsl:variable name="input"><ARE><YOU><NUTS></xsl:variable>

<xsl:apply-templates select="vendor:node-set($input)" />

I'd like each template that is matched to pass along a value (as determined by the matched template) to the next template that is matched.

    <xsl:template  match="ARE">
        <xsl:param name="x" select="''"/>
        <!-- create some value that should be accessed by the
             next template matched -- in my example, "YOU" -->
    </xsl:template>

    <xsl:template  match="YOU">
        <xsl:param name="x" select="''"/>
        <!-- create some value that should be accessed by the
             next template matched -- in my example, "NUTS" -->
    </xsl:template>

    <xsl:template  match="NUTS">
        <xsl:param name="x" select="''"/>
        <!-- whatever -->
    </xsl:template>

Thanks,

Paul