Spain's Prime Minister Pedro Sanchez said the move was aimed at accelerating efforts to secure a ceasefire in Israel's war with Hamas in Gaza.
"We hope that our recognition and our reasons contribute to other Western countries to follow this path because the more we are, the more strength we will have to impose a ceasefire, to achieve the release of the hostages held by Hamas, to relaunch the political process that can lead to a peace agreement," he said in a speech to the country's lower house on Wednesday.
Ireland's Prime Minister Simon Harris announced the decision at a news conference in Dublin.
He added that Ireland was unequivocal in recognising Israel's right to exist "securely and in peace with its neighbours" and called for all hostages in Gaza to be immediately returned.
Ireland's Prime Minister Simon Harris also called for all hostages in Gaza to be returned to Israel. (AP PHOTO)
In Oslo, Norwegian Prime Minister Jonas Gahr Store said the only possible political solution between Israelis and Palestinians was "two states living side by side in peace and security".
Israeli Foreign Minister Israel Katz ordered the immediate return of the Israeli ambassadors from the three countries for consultations, and warned of further "severe consequences".
"I am sending a clear message today: Israel will not be complacent against those who undermine its sovereignty and endanger its security," he said.
The decision was welcomed by the Palestinian Authority, which exercises limited self rule in the Israeli occupied West Bank, and by Hamas, which has ruled the Gaza Strip since driving the PA out of the enclave in 2007.
About 144 out of 193 member-states of the United Nations recognise Palestine as a state, including most of the global south, Russia, China and India.
But only a handful of the 27 EU members have done so so far, mostly former Communist countries as well as Sweden and Cyprus.
Britain, Australia and EU member Malta have indicated in recent months that they could soon follow suit.
Recognition of a Palestinian state is still opposed for now by Israel's closest ally the United States, which has the power to veto it at the UN and did so in April.
Washington says it favours Palestinian statehood eventually, but only as a result of negotiations with Israel, a position it shares with European powers including France and Germany.
No negotiations over Palestinian statehood have taken place since the last round of talks collapsed a decade ago.
Israel launched its war in Gaza in retaliation for an October 7 assault by Hamas in which fighters killed 1200 people and took more than 250 hostages, by Israeli tallies.
Israel's operations in the enclave have killed more than 35,000 Palestinians, according to Gaza's health ministry.
Israel says recognising Palestinian statehood now would effectively reward Hamas for its attacks.
Spain and its allies have spent months lobbying European nations including France, Portugal, Belgium and Slovenia to garner support for the recognition of a Palestinian state.
Israel's foreign ministry said it would reprimand the Irish, Spanish and Norwegian ambassadors and show them a video of female hostages being held in captivity by Hamas.
Palestinians seek statehood in the Israeli-occupied West Bank and the Gaza Strip, with East Jerusalem as their capital.
