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Why is Israel afraid of the establishment of a Palestinian state?

The decision by Norway, Ireland, and Spain to officially recognize Palestine has sparked debates in Israel. The Israeli public sees this development as a significant shock, unprecedented for Tel Aviv, while it is known that many other countries are preparing to take similar steps. So why is Israel anxious? Why is it afraid of a two-state solution?

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While Israel continues its Apartheid system, disproportionate violence, killings, house demolitions, displacement, settler violence, and violations of the status of Al-Aqsa Mosque in the occupied Palestinian territories, there is no political horizon to preserve the option of a two-state solution according to international legitimacy.