JAFFA, Israel — As a Holocaust survivor, a successful financier who embraces free market capitalism and a philanthropist who champions liberal democracy, George Soros should be a darling of the Israeli establishment. But Mr. Soros has failed the only litmus test that seems to count for Israel’s current leadership: unconditional support for the government, despite its policies of occupation, discrimination and disregard for civil and human rights.

For years Mr. Soros largely avoided Israel-related philanthropy, but he became involved in 2008 when he contributed to J Street, a moderate pro-Israel, pro-peace lobbying group based in Washington, after it was founded. Through his Open Society Foundations, Mr. Soros also contributes to the Israeli human rights organization B’Tselem and the anti-occupation group Breaking the Silence, which have been subjected to a growing delegitimization campaign by the Israeli government.

But Israel’s prime minister, Benjamin Netanyahu, raised the stakes in this feud last week when his foreign ministry issued a statement that, in effect, backed a Hungarian government propaganda effort against Mr. Soros and joined its denunciation of him. This contradicted earlier remarks by Israel’s ambassador to Hungary, Yossi Amrani, who had expressed dismay at the $21-million billboard campaign by the ruling party of Hungary’s prime minister, Viktor Orban, that has targeted Mr. Soros for his support of services for refugees and immigrants. The poster campaign, which has also attracted explicitly anti-Semitic graffiti, “evokes sad memories but also sows hatred and fear,” said the ambassador, referencing the fate of Hungarian Jews in the Holocaust.

The foreign ministry spokesman denied that the Israeli ambassador’s comments “meant to delegitimize criticism of George Soros” by Mr. Orban’s government. Instead, the spokesman went on to attack the billionaire philanthropist for “continuously undermining Israel’s democratically elected governments,” by his funding of organizations “that defame the Jewish state and seek to deny it the right to defend itself.”