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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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However, the steps taken by the Netanyahu government are not limited to this. The government also plans to acquire new authorities, which include: - Establishing a new settlement in the West Bank for every country that recognizes the Palestinian State. - Canceling the agreement that requires the transfer of exchange funds to the Palestinian Authority through Norway. - Permanently canceling all VIP passes of Palestinian Authority officials. - Imposing economic sanctions on the authorities and their families. - Not transferring tax revenues obtained from goods arriving at ports to Palestinians.