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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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Retaliation Steps: Following these decisions in Europe, the Netanyahu government announced retaliation against the Palestinians by expanding the settler colonies. Israel responded to these decisions by reactivating a series of living units evacuated 20 years ago in the West Bank and imposing economic and political sanctions on the Palestinian Authority. Furthermore, the Israeli government plans to establish 10,000 housing units in Israeli settlements in the West Bank, including the planned area known as "E1". This new settler colony aims to connect Jerusalem to a series of settlements in the eastern West Bank.