How do financial shocks ripple through an economy - globally, regionally, or idiosyncratically? We propose a novel decomposition of connectedness across European sovereigns, financial institutions, and non-financial firms by separating global shocks, block-level shocks (within economic or sectoral groups), and purely idiosyncratic spillovers. Using credit default swaps (CDS) spreads as a forward-looking measure of credit risk, we show that ignoring block-level dynamics can misattribute sectorwide or regional movements to firm-specific contagion. Our heatmap visualizations reveal clear shifts in transmission patterns when these block factors are included, shedding light on where financial contagion originates and how it spreads, offering a more nuanced view of systemic risk and its underlying structure. This layered approach not only improves our understanding of systemic risk, but also provides a valuable tool for macrofinancial surveillance, offering insight into where vulnerabilities lie.