Further European integration would indeed probably lead to a better functioning EMU. However, major steps forward are controversial, and may not be politically feasible in the current environment. In countries like The Netherlands, controversy mostly centers around a further increase in public risksharing. The fundamental problem is that Member States still differ substantially in terms of adaptability, overall competitiveness and institutional quality.
If starting positions differ so much, a stabilization fund might not result in ex-ante fair risk-sharing, but in a quasi-permanent one-way transfer system. Therefore, any further increase in public risk-sharing is only desirable if it is accompanied by a significant risk reduction. This however requires a further transfer of sovereignty; a policy that is equally controversial in many Member States.