(Updates with comments from Libyan leader Gaddafi)

By Henrique Almeida and Ingrid Melander

LISBON, Dec 8 (Reuters) - Europe and Africa must work together to boost education, employment and infrastructure in Africa to stop the flow of illegal immigrants to the 27-nation bloc, Spain's prime minister said on Saturday.

His remarks at a summit of EU and African leaders in Lisbon drew a sharp response from Libyan leader Muammar Gaddafi, who said Europe's past colonisation of the continent was to blame and that the wealthy 27-nation bloc should bear the costs.

"Illegal immigration is the dramatic result of our collective failure," Jose Luiz Zapatero said in a speech. "It produces citizens that are vulnerable to human trafficking, abuse and without any rights in the countries of destination."

On Spain's Canary Islands alone, which are about 110 km (68 miles) off the coast of West Africa, around 31,000 illegal immigrants arrived by boat last year. Italy and Malta face similar problems. Thousands more die in the perilous journey.

Gaddafi, speaking on behalf of African nations, said Europe had to solve a problem it had created.

"Either you give us back our resources or you invite us in your countries. That's a fairly straight choice," two EU diplomatic sources quoted him as saying.

"The concept of colonialism was a negative experience. The backlash is Europe's difficulty now, which is immigration," Gaddafi was quoted as saying. "Our natural resources were robbed. Underdevelopment was imposed on Africa."

Although the number of illegal immigrants reaching Europe by sea declined this year, mainly due to increased patrols along the North African coast, Zapatero said more should be done.

He said the EU and Africa should forge a pact to create schools for children, jobs for young men and better infrastructure in Africa. Both continents should also establish a legal framework that would let skilled African workers come to the EU, Zapatero said.

The European Union recently unveiled a "blue card" plan, aimed at attracting highly skilled workers from outside the union, which has a rapidly ageing work force.

"I hope this summit marks a before and an after," said Zapatero. "The EU needs to be Africa's main ally. Thousands of children and young men that have a difficult future in Africa deserve it."

Gaddafi responded that Africa would not accept being lectured to, but was a friend of Europe. (Editing by Caroline Drees)

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