Comment: Not every year; a one-off payment.
Col Gaddafi made the demand as he ended his controversial two-day visit to Italy where he caused outrage in the Catholic church by hosting two 'convert to Islam parties'.
Today furious Italian MPs slammed his demands - made in his farewell speech - for cash to stop immigration and compared them to a 'Mafia extortion racket'.
In the speech Gaddafi, 67, told his audience in Rome:
'Italy needs to convince her European allies to accept this Libyan proposal - five billion euro to Libya to stop illegal immigration.Critics immediately targeted Gaddafi, pointing out how the UN High Commission for Refugees closed its Libyan office earlier this year.
'Europe runs the risk of turning black from illegal immigration, it could turn into Africa.
'We need support from the European Union to stop this army trying to get across from Libya, which is their entry point.
'At the moment there is a dangerous level of immigration from Africa into Europe and we don't know what will happen.
'What will be the reaction of the white Christian Europeans to this mass of hungry, uneducated Africans?
'We don't know if Europe will remain an advanced and cohesive continent or if it will be destroyed by this barbarian invasion. We have to imagine that this could happen but before it does we need to work together.'
Opposition MPs called on Silvio Berlusconi to distance himself from the Libyan leader and his attempts to secure money from the EU.
Silvana Mura, of the anti-sleaze party Italy of Values, said: 'We need to know immediately if the Italian government intends to support this proposal which is in essence an unacceptable blackmail.
'We have already had to support the clown antics of the Libyan leader on his visit to Italy, with the approval of the government and now he is asking for a pay off from Europe.'
In 2008 Italy and Libya agreed a deal that allows the Italian navy to intercept illegal immigrants and return them to Libya.
Comment: In other words, Libya was doing the Europeans' dirty work, so it had every right to request compensation - just as the EU recently accepted with Turkey, paying it at least two installments of 3 billion euros.
The move triggered sharp criticism from the UN's refugee agency and human rights groups.
Thousands of people each year attempt to cross the Mediterranean from Libya to Italy and many die en route, while those who are caught are taken back to camps in Libya where conditions are appalling.
Comment: Now, post-Gaddafi, thousands are attempting the crossing DAILY.
Luigi de Magistris, an MEP with Italy of Values, said: 'The dictator Gaddafi wants five billion euro to stop immigration but where will the money go?
'Will it go towards those deported and put into concentration camps in Libya?'
Comment: Gaddafi doesn't sound so unreasonable and crazy now, does he?
They scoffed at his request for €5 billion, then had him brutally murdered a year later.
How much has the refugee/migrant crisis cost Europe since it recklessly assisted the Americans in 'tearing down the Libyan migrant wall'?
Germany alone - in just 2016 - spent at least €20bn on the refugees that reached its borders. It is forecast to spend twice that amount in 2017. That right there is €60 billion, over ten times what Gaddafi suggested the EU pay Libya to stem migrant flows from Africa.
Granted, the billions Germany has spent has largely gone towards accepting Syrian refugees reaching Europe via Turkey and Greece, not Africans pouring through the no-longer-existent-Libya. But the root cause of both flows is exactly the same: US-led Western wars with proxy armies, first in Libya, then in Syria/Iraq.
At this point, it would probably cost trillions of euros to stabilize the massive dislocations, trillions that Western leaders don't have. And thus...
"You're going to reap just what you sow..."