Al-Qadhafi was speaking on the second and final day of a visit to Brussels - his first trip to Europe in 15 years - which marks a further step in ending Libya's international isolation.
"I want to hear Europe's voice about the current tragedy in Iraq. Europe should ask questions of other people about the reasons for this occupation," he said on Wednesday.
"I would like Europe to contribute to resolving the problem of the Middle East in a direct way, and not to be marginalised," he said.
Al-Qadhafi rejected the two-state solution to the Israeli-Palestinian conflict proposed by the so-called road map.
"In my opinion the solution is to build a democratic state for everyone," he said.
Earlier, on Tuesday, he warned an upsurge in violence across the Middle East could undo Libya's conversion. "I hope we shall not be prompted or obliged by any evil to go back or look backward," he said.
Al-Qadhafi also urged world leaders to follow his lead in seeking peace, such as by reducing stockpiles of nuclear weapons.
"Libya is determined and committed to play a leading role in achieving world peace," he said, calling on the United States and China, among others, to follow his lead in renouncing weapons of mass destruction.
Thawing relations: Al-Qadhafi met
UK Premier Tony Blair recently
Reflecting on the definition of terrorism, al-Qadhafi set out the reasons which fuel terror acts.
"When you are targeted, you are liable to put belts around your body, to set car bombs ... to defend the family," he said.
"Terrorism is the result of the imbalance in the world at the moment," he said. "The terrorist is one who is forced to defend himself to win back rights by brutal means, terrorist means, because there are no other means."
Al-Qadhafi's trip came just days after US President George Bush announced that Washington was easing nearly two decades of economic sanctions on the oil-wealthy country.