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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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The area designated for the Arab state comprised Western Galilee, Acre, the West Bank, and a part of the southern coast extending from north of Ashdod to Rafah in the south, covering 11,000 square kilometers. The area designated for the Jewish state comprised the coastal strip from Haifa to Tel Aviv, fertile lands in Eastern Galilee, the Sea of Galilee, the northeastern border of the occupied Palestinian territories, and the majority of the Negev Desert, covering approximately 15,000 square kilometers.