An exchange traded fund indexed to French stocks fell sharply with European equities on Friday as traders were reluctant keep long positions into the weekend on worries of a potential credit event in Europe.

The iShares MSCI France Index (NYSEArca: EWQ) was down 5% in afternoon trading Friday in the U.S.

Stock ETFs pulled back after the European Central Bank said executive board member Juergen Stark is stepping down. [Euro, Stock ETFs Lower on Debt Jitters]

French lawmakers recently approved a contribution to the Greek bailout plan.

France’s upper house, the Senate, has approved measures to contribute to Greece’s bailout package. The aid is approved along with Nicholas Sarkozy’s domestic austerity plan for France.

“If we do nothing, it will be a catastrophe. If we do too much, it will be a recession,” Sarkozy told lawmakers, reported by ChannelNewsAsia, insisting that deficit reduction should not be allowed to hurt jobs and growth. [The Contrarian: Single-Country ETFs]