Switzerland has put together a generous financial package to prop up the Hamas-ruled Gaza Strip after billions in promised foreign donations following last summer’s Gaza war failed to materialize.

That according to Palestinian officials who spoke to Israel’s NRG news portal, which reported that as part of the deal, the Swiss government would pay the salaries of thousands of Hamas members – many of whom are known terrorists – thereby propping up Hamas rule.

If true, the move would directly undermine Israel’s efforts to bring Hamas to its knees and affect the eventual downfall of a terrorist regime that has for the better part of a decade held the Gaza population hostage to its violent policies toward the Jewish state.

It would also make for an awkward situation back home since the European Union, of which Switzerland is not a member, has fought to retain Hamas on its list of recognized terrorist organizations, despite an EU General Court ruling last year that the group be removed from that list.

Being on that list means that all Hamas assets in Europe are frozen and it is illegal to do business with the Palestinian group. Switzerland’s reported decision to take the opposite approach to Hamas could result in some hard discussions with its neighbors.